Objectives that have a quantitative value are likely to prove to be more effective targets for directors and staff to work towards
measurable
Objectives should be realistic when compared with the resources of the company and should be expressed in terms relevant to the people who have to carry them out
relevant
is there a specific/standarised way of measuring a business?
no
Setting objectives that are possible in the time frame given is key
Achievable
Business growth can be achieved in a number of ways and these forms of growth can lead to differing effects on stakeholder groups, such as customers, workers and competitors. The different forms of growth can be grouped into:
internal and external
T/F it is acceptable to measure the size of a cellphone manufacturer and a paper company because there is no standard in measuring the size of a business.
False. Even through there is no standard businesses should belong to the same industry.
A time limit should be set when an objective is established
time specific
what is a mission statement?
statement of the business's core aims, phrased in a way to motivate employees and to stimulate interest by outside groups
what are the ways in which we can measure the size of a business?
number of employees, revenue, capital employed, market capitalisation, market share
Objectives should focus on what the business does and should apply directly to that business.
specific
what is market share?
sales of the business as a proportion of total market sales
corporate aim (keywords)
spark, seed, starting point
what is market capitalisation?
the total value of a company’s issued shares
who would be interested in knowing the size of a business?
investors and customers
what is capital employed?
the total value of all long-term finance invested in the business.
Your experience on this site will be improved by allowing cookies.