Business Objectives

Defining Business Objectives00:00:00

Business objectives are the specific, intended outcomes of a business's strategy, translating its aims into measurable targets. They provide a clear focus for what the business wants to achieve at various levels, from the overall business to individual teams, and serve as a measure of performance.

Typical Corporate Objectives00:01:01

Typical corporate objectives can include maximizing profit, ensuring survival, maximizing business value, increasing sales revenue, and maintaining a strong corporate image and reputation. These objectives are not solely financial but encompass broader aspects of business performance.

SMART Objectives00:01:44

Business objectives should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. This mnemonic is widely used to evaluate and ensure the effectiveness of business objectives, making them easily defined, understood, and trackable.

Hierarchy of Objectives00:02:37

Corporate objectives are at the top of the hierarchy and should feed down into functional objectives (e.g., marketing objectives) and individual objectives. For example, a corporate objective to reduce unit costs can lead to an operational objective to improve productivity.