Unit 1 – Introduction to Business Management
1.3 – Business Objectives
Focus: Vision & Mission Statements, Business Objectives, Strategic & Tactical Objectives, Corporate Social Responsibility (CSR)
What Are Business Objectives?
Business objectives are precise, measurable goals set by an organization to guide its strategy, operations, and progress. They provide direction for managers, motivate staff, and communicate standards to stakeholders.
- Strategic objectives: Long-term, broad aims set by top management (e.g., “Expand into three new countries by 2030”).
- Tactical objectives: Short- to mid-term, department-level goals (e.g., “Increase market share by 7% this year”).
- Operational objectives: Day-to-day targets for individual teams (e.g., “Reduce delivery time to under 24 hours”).
Why set objectives?
- Give clear guidance and focus to everyone in the organization.
- Help track and measure progress toward the mission.
- Clarify expectations for employees and management.
- Prioritize use of resources and effort.
- Allow benchmarking and performance evaluation.
Vision & Mission Statement
Vision Statement:
Mission Statement:
Describes what the organization ultimately aims to become or achieve in the future – its “dream” or ultimate purpose.
Example: “To accelerate the world’s transition to sustainable energy.” – TeslaMission Statement:
Explains the business’s core reason for existing and how it seeks to fulfill its vision (what, who, how).
Example: “To organize the world’s information and make it universally accessible and useful.” – GoogleVision is about the ultimate "why"; mission is more about "what we do now and how we do it."
Comparison Table
| Aspect | Vision Statement | Mission Statement |
|---|---|---|
| Purpose | Long-term inspiration, aspiration | Short- to mid-term actionable direction |
| Timeframe | Future-looking | Current focus |
| Content | What we want to achieve | What we do and how we do it |
| Audience | Employees, public, investors | Employees, customers, partners |
Types of Business Objectives
- Profit maximization — Aim to achieve the highest possible financial surplus.
- Growth — Expand market share, sales, or operations.
- Survival — Ensure the business continues during tough periods.
- Market leadership — Become #1 or #2 in the market.
- Customer satisfaction — Maximize retention, loyalty, ratings.
- Employee well-being — Fair wages, development, motivation.
- Ethical & social goals — Sustainability, charity, good corporate citizenship.
SMART objectives:
\[ \text{Objectives should be: Specific, Measurable, Achievable, Relevant, Time-bound} \]
\[ \text{Objectives should be: Specific, Measurable, Achievable, Relevant, Time-bound} \]
- Specific: Clearly defined goal
- Measurable: Quantified or clear metric
- Achievable: Realistically attainable
- Relevant: Matches overall mission and direction
- Time-bound: Set within a timeframe
Strategic vs. Tactical Objectives
Strategic objectives are set by senior leadership and relate to major company direction, e.g., “Expand into Asia.”
Tactical objectives are how departments or functions aim to achieve the strategic goals, e.g., “Hire 10 new sales reps in Asia this year.”
Operational objectives are even more specific aims for teams and individuals.
Tactical objectives are how departments or functions aim to achieve the strategic goals, e.g., “Hire 10 new sales reps in Asia this year.”
Operational objectives are even more specific aims for teams and individuals.
| Strategic Objectives | Tactical Objectives |
|---|---|
| Long-term, organization-wide | Short- to mid-term, department-level |
| Set by executives/board | Set by middle managers/department heads |
| Broad, ambitious | Detailed, actionable |
| e.g.: “Expand in Asia” | e.g.: “Launch ad campaign in Singapore in Q3” |
Corporate Social Responsibility (CSR)
Definition: CSR is the practice of companies taking responsibility for the wider social, environmental, and ethical impact of their actions, beyond making profit for owners.
- Environmental: Reduce emissions, conserve resources, use sustainable materials, eco-innovation.
- Social: Fair labor, supporting communities, diversity, charity.
- Economic: Ethical finance, fair wages, investing in long-term societal good.
Why adopt CSR?
- Brand trust & positive reputation
- Retain/attract employees & customers
- Legal compliance and risk reduction
- Positive impact on society and environment
Example initiatives:
- Renewable energy investment
- Community volunteer programs
- Ethical sourcing policies
- Donations to local or global causes