1.3 Business Objectives

• The hierarchy of objectives in order from long term to short term and broad to specific is vision, mission, strategies and tactics.
• A vision statement is an outline of the organisation's aspirations in the future focussing on the long term. They are not frequently updated and non-specific.
• A mission statement is a declaration of the purpose and values of an organisation and focusses on the medium to long term with frequent updates.
• Growth is measured by an increase in sales or market share and is essential for competitiveness.
• Profitability is the main objective of most primary sector businesses and pertains to profit maximisation.
• Protecting shareholder value is about maintaining a profitable return for shareholders and can be challenging for directors balancing short term profits with long term investment.
• Ethical objectives regard moral principles guiding decision making. Advantages include better corporate image, customer loyalty, the ability to cost-cut and improved staff morale. Disadvantages include compliance sots, lower profits, stakeholder conflict and the subjective nature of these practices.
• Strategies are plans for the organisation to achieve its objectives and are medium to long term goals.
• Strategic objectives include market standing, image and reputation and market share.
• Tactics are methods to enact strategies of an organisation and are planned over the short term.
• Relationship between objectives: tactics-> strategies->mission->vision.
• Corporate Social Responsibility or CSR is the conscientious consideration of ethical and environmental practices of a business.
• Objectives are important for three reasons: to measure and control, to motivate and to direct