Objectives in Business

Topics: Management, Strategic management, Economics Pages: 3 (839 words) Published: May 25, 2013
Task 5

1) In order to achieve its main aims a business adopts a plan that contains objectives. There are two types of objectives, strategic and tactical objectives. Strategic objectives are objectives set for the long run; tactical objectives are short day-to-day objectives that the business needs to operate. Setting objectives provides a greater sense of direction for the business. So once an objective is set, the employees, owner and directors even, have a clear pathway and guide of what they want the business to achieve and the objective gives everyone motivation for the business to achieve the objective set, because in the end if the business does well this means a higher income and prestige for everyone. However once the objective has been set it’s not just a question of sitting back and waiting, there are going to be constraints that hinder the progress and in some directions may require a complete change in direction. Thus this means the stakeholders may need to be flexible in what they do, as the tactical objectives may be changing daily, so in the long run the strategic objectives are met. Another reason why businesses set objectives is for an aid to controlling existing and future operations in the business. If no objectives were set the business as a whole would not know how to function, and different departments may be doing different unrelated things. So when setting an objectives it is vital to make it specific so everyone understands what the target is, measurable to ensure success or failure can be ascertained, agreed between different departments and chains, its also important to make it realistic so staff don’t become demotivated. Once clear objectives have been set by these guidelines this will now give a sense of co-ordination to the business. This means that everyone in the business is working towards the same goal in the business.

2) Over time, as circumstances change, businesses may need to adapt their objectives. In particular, a...
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