Definition of Business objectives
1 Meaning of Corporate objectivesWe can define the objectives of the company: functions and features as the results that you want to reach or on weekends which is heading his behavior an organization or company.
We can also define it as the preconceived or planned position, which is to be achieved. To better understand what are the objectives of the company we see are their functions.
or the company's objectives serve to guide and coordinate actions in the heart of the company.
or provide a basis for evaluation and control of the results.
or motivation to employees.
or transmit the intentions of the company in search of support and image abroad.
Characteristics of the objectives
The objectives should be clear and specific, so the members of the Organization will understand perfectly where you want to go the company and what is expected of them, and in this way the objectives will serve as guide and motivation.
or objectives must be real, since desanimarían unattainable objectives, and mobilization of efforts would not serve as easy-to-achieve goals.
or objectives must be measurable to appreciate perfectly which is the difference to cover and which must be made to cover this difference.
In addition, a measurable goal is more easily controllable.
Types of objectives:
• Closed which defines the variable (e.g. growth), quantity (i.e. increase by 5%) and the term.
• Open only the variable, set undetermined amount or term.
2. Definition of Business objectivesThe companies are, as any organization, objectives. In this case, the purpose in general, or of all businesses long-term objectives, is the maximum possible profit, and position themselves in the market with its brand and its prestige.
To these general objectives, each company added to their specific objectives, which shall be given by the situation which is going through each one of them in particular. If a company is in crisis, its short-term objective may not be opening new branches, or hire more staff, or other type of investment, that can be done during a period of bonanza.
The specific objectives of each company, then, must adapt to their current situation, they must be concrete (open two branches increase 20% sales, incorporate new products or the provision of other services, maximize quality, and so on) and be measurable, through periodic assessments, to see if they are achieving.
Many companies have joined among its purposes, social or altruistic, as for example, donate part of the proceeds to charities or establish foundations, which gives them an image of company solidarity, and also allows you to manage part of their taxes directing them to works of charity who choose to perform, and not those which determines the public authority (in any caseThere is a legal limit to download tributes donations).
For the purposes, it should be a plan or action strategies, enabling lower costs but subtract quality, comply with them.
Every successful company must be oriented on the basis of flexible planning, pointing to clear objectives, possible, measurable and profitable.
3. Objectives of the business conceptThe goals are results that a company intends to achieve, or situations where it aims to reach.
Importance of goalsSet goals is essential for the success of a company, they set a course to follow, and they serve as a source of motivation for all the members of the company.
Some of the reasons for setting targets are:
• allow to focus efforts towards the same direction.
• serve as a guide for the formulation of strategies.
• serve as a guide for the allocation of resources.
• serve as a base for the accomplishment of tasks or activities.
• allow to evaluate results, compare the results obtained with the proposed objectives and, thus, to measure the efficiency or productivity of the company, each area, each group or each worker.
• create coordination, organization and control.
• generate participation, commitment and motivation; and, to achieve them, generate a degree of satisfaction.
• reveal priorities.
• produce synergy.
• decrease the uncertainty.
Characteristics of the objectivesThe objectives should be:
Measurable. The objectives must be measurable, i.e. should be quantitative and tied to a time limit. For example, instead of the objective: "upsell", a measurable goal would be: "increase sales by 20% for the next month". However, it is possible to use generic objectives, but provided they are accompanied by specific or measurable objectives that together, enable to achieve generic.
Clear: The objectives must have a clear, understandable definition and accurate, must not lend itself to confusion or leave too many margins of interpretation.
Achievable: The objectives must be possible reach, must be within the capabilities of the company, taking into account the capacity or resources (human, financial, technological, etc.) having this. It must be considered also the availability of time to fulfil them.
Challenging: It should be challenging, but realistic. They should not be something that will happen anyway, but something that means a challenge or a challenge. Little ambitious objectives are not very useful, although easy targets at the beginning can serve as a stimulus to not leave the road just this has started.
Realistic: They should take into account the conditions and circumstances of the environment where the aim is to meet, for example, an unrealistic goal would increase from 10 to 1000 employees in a month. The goals should be reasonable, taking into account the environment, capacity and resources of the company.
Consistent: They must be aligned and consistent with other objectives, vision, mission, policy, organizational culture and values of the company.
Types of lensesa general objectives
They are generic expressions, examples of generic or general objectives are:
• be the market leader.
• increase sales.
• generate higher profits.
• achieve greater profitability.
• achieve greater participation in the market.
• be a leading brand in the market.
• be a brand recognized for its variety of designs.
• increase the assets.
Within the General objectives, is the vision of the company, which is the main objective pursued by a company.
b. specific objectives
They are specific targets to achieve the General objectives, they are expressed in quantity and time, are examples of specific objectives:
• increase monthly sales by 20%.
• generate monthly profits greater than USD 20 000 from next year.
• get an annual return of 25%.
• achieve a market share of 20% for the second half.
• produce an annual return of 14% on investment.
• improve the efficiency of production by 20% for the next month.
• sell 10 000 products at the end of the first year.
• Triple production by year's end.
• acquire 2 new machineries for the second half.
• Open three stores for the first quarter of next year.
Specific objectives sometimes referred to as goals.
According to the scope of the time, the objectives can be classified into:
a long-term (strategic) objectives
The objectives at the level of the Organization are, they serve to define the direction of the company. They are usually for a period of five years, and three as a minimum. Each strategic objective requires a series of tactical objectives.
b. objectives of the medium-term (tactical)
Objectives level areas or departments, established on the basis of the strategic objectives. They are usually for a period of one to three years. Each tactical objective requires a series of operational objectives.
c. short-term (operational) goals
Objectives at the level of operations, set out according to the tactical objectives. They are usually made for one period not more than a year.
Recommendations on the use of objectivesFinally let's look at some tips on the use of objectives:
• General objectives should be established, but if these serve as reference to set specific targets. Set only objectives, you can generate confusion and lack of awareness of where to really want to get, it is always necessary to accompany them with specific objectives.
• It is necessary to set targets for the company in general, for each division or area, and for each team. The objectives for each team are set depending on the objectives of each area, and the objectives of each area are formulated according to the objectives of the company.
• the goals should not be static, sufficient flexibility should be taken to be able to adapt to unexpected changes that could happen in the environment, for example, sudden changes in the tastes of consumers as a result of new fashions.
• You should always set priorities, achieving the objectives in order of importance or urgency.
• and, finally, the objectives must be known by all levels of the company, and should always be remembered permanently.