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

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

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? Corporate objectives Departmental objectives Individual objectives

Corporate objectives

Departmental objectives

Individual objectives

What is the difference between a vision and a mission? Vision Outlines a business’ aspirations Visualization of what success would look like Focused on the very long term Do not have to have actual targets Mission 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

Vision

Outlines a business’ aspirations

Visualization of what success would look like

Focused on the very long term

Do not have to have actual targets

Mission

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? Aims Long-term goals of an organization Usually unquantifiable Serve to give a purpose to the general direction of an organization Often expressed in a mission statement Objectives Short term and specific goals of an organization based on aims More likely to be quantifiable or measurable

Aims

Long-term goals of an organization

Usually unquantifiable

Serve to give a purpose to the general direction of an organization

Often expressed in a mission statement

Objectives

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

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? Organizational strategies Day-to-day methods to improve efficiency Aimed at trying to achieve the tactical objectives Generic strategies Affect the business as a whole Corporate strategies Aimed at the long-term objectives Used to achieve the strategic objectives

Organizational strategies

Day-to-day methods to improve efficiency

Aimed at trying to achieve the tactical objectives

Generic strategies

Affect the business as a whole

Corporate strategies

Aimed at the long-term objectives

Used to achieve the strategic objectives

What are typical strategic objectives? Profit maximization Growth Image and reputation Market standing

Profit maximization

Growth

Image and reputation

Market standing

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 Examples Survival (in cases of a recession or takeover bid from a rival) Sales revenue maximization

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

Examples

Survival (in cases of a recession or takeover bid from a rival)

Sales revenue maximization