{"id":3043,"date":"2025-09-05T09:55:12","date_gmt":"2025-09-05T09:55:12","guid":{"rendered":"https:\/\/acmeitsolutions.net\/ibcognito\/?post_type=notes&p=3043"},"modified":"2025-09-05T09:56:13","modified_gmt":"2025-09-05T09:56:13","slug":"unit-1-3-business-objective","status":"publish","type":"notes","link":"https:\/\/acmeitsolutions.net\/ibcognito\/notes\/unit-1-3-business-objective\/","title":{"rendered":"Unit 1.3- Business objective"},"content":{"rendered":"\n

What are Vision Statements?<\/strong><\/h2>\n\n\n\n

A vision statement outlines an organization’s long-term goals and aspirations.<\/strong>\u00a0It provides a clear direction, inspires employees, and guides decision-making. A strong vision, like Adidas’ “To be the leading sports brand in the world,” can drive significant change.<\/p>\n\n\n\n

<\/div>\n\n\n\n

What are Mission Statements?<\/strong><\/strong><\/p>\n\n\n\n

A mission statement declares an organization’s core purpose and values.<\/strong>\u00a0Unlike a vision, which focuses on the future, a mission is present-oriented. It defines the organization’s reason for existence and its guiding principles. A strong mission statement is clear, concise, and enduring, serving as a foundation for decision-making and actions.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Uses of Business Objectives<\/strong><\/h2>\n\n\n\n

Functions of Business Objectives<\/strong><\/p>\n\n\n\n

    \n
  • Control:<\/strong>\u00a0Business objectives set standards for measuring and controlling performance.<\/li>\n\n\n\n
  • Motivation:<\/strong>\u00a0They inspire employees, unify teams, and encourage strategic thinking.<\/li>\n\n\n\n
  • Direction:<\/strong>\u00a0Business objectives provide a clear focus for the entire organization and guide decision-making<\/li>\n<\/ul>\n\n\n\n
    <\/div>\n\n\n\n

    Growth<\/strong><\/strong><\/h2>\n\n\n\n
      \n
    • The growth of a business is usually measured by an increase in its sales revenues or by its market share (the firm’s sales revenue expressed as a percentage of the industry’s total sales revenue).<\/li>\n\n\n\n
    • Growth is essential for the survival of a business in an everchanging and competitive world, especially with the exposure of companies to mergers and takeovers.<\/li>\n\n\n\n
    • The failure to grow may result in declining competitiveness and threaten the firm’s sustainability.<\/li>\n<\/ul>\n\n\n\n
      <\/div>\n\n\n\n

      Profit<\/strong><\/strong><\/h2>\n\n\n\n
        \n
      • Traditionally, the main business objective of most private sector organizations is to maximize profits.<\/li>\n\n\n\n
      • Profit incentivizes entrepreneurs to take risks in setting up and running a business. For incorporated businesses , a proportion of the profits ( called dividends) is distributed to their shareholders.<\/li>\n\n\n\n
      • Without a profit motive, owners and investors find it difficult to justify the business\u2019s existence.<\/li>\n\n\n\n
      • \u00a0Milton Friedman (1912 – 2006), recipient of the Nobel Prize in Economics in 1976, said that “there is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits:<\/li>\n<\/ul>\n\n\n\n
        <\/div>\n\n\n\n

        Protecting Shareholder Value<\/strong><\/strong><\/p>\n\n\n\n

          \n
        • Protecting and maximizing shareholder value is about earning a profitable return for shareholders sustainably.<\/li>\n\n\n\n
        • \u00a0Most shareholders do not typically get involved in the day-to-day operations of the company, so rely on directors, managers, and employees to protect their interests.<\/li>\n\n\n\n
        • The board of directors is ultimately and directly responsible for protecting and managing shareholders’ interests in the company. Shareholder value is the result of the business strategy the board of directors pursues.<\/li>\n<\/ul>\n\n\n\n
          <\/div>\n\n\n\n

          Ethical Objectives<\/strong><\/strong><\/p>\n\n\n\n

            \n
          • Business ethics<\/strong>\u00a0are moral principles that guide a company’s actions towards its employees, customers, shareholders, and the environment. What is considered ethical often aligns with societal values and is sometimes enforced by law.<\/li>\n\n\n\n
          • For instance, laws against child-targeted marketing and labor exploitation reflect ethical concerns.<\/li>\n\n\n\n
          • Ethical businesses prioritize fair treatment of workers, safe and responsible operations, and minimizing environmental impact. This includes providing fair wages, safe working conditions, and adopting sustainable practices like recycling and reducing pollution.<\/li>\n<\/ul>\n\n\n\n
            <\/div>\n\n\n\n

            Advantages and Disadvantages of Being Ethical<\/strong><\/strong><\/h2>\n\n\n\n

            Advantages <\/strong><\/strong><\/p>\n\n\n\n

              \n
            • Improved reputation and image:<\/strong> Ethical behavior can enhance a company’s public image and build trust with customers.<\/li>\n\n\n\n
            • Increased customer loyalty:<\/strong> Customers are more likely to support businesses with strong ethical values.<\/li>\n\n\n\n
            • Cost reduction:<\/strong> Ethical practices can lead to cost savings, such as reduced waste and legal expenses.<\/li>\n\n\n\n
            • Improved employee morale and productivity:<\/strong> A positive work environment and ethical practices can boost employee satisfaction and performance.<\/li>\n<\/ul>\n\n\n\n
              <\/div>\n\n\n\n

              Disadvantages <\/strong><\/strong><\/p>\n\n\n\n

                \n
              • Increased costs:<\/strong> Implementing ethical practices often involves additional expenses.<\/li>\n\n\n\n
              • Lower profits:<\/strong> Higher costs may impact profitability unless passed on to consumers.<\/li>\n\n\n\n
              • Stakeholder conflict:<\/strong> Different stakeholders may have conflicting expectations regarding ethical priorities.<\/li>\n\n\n\n
              • Subjective nature of ethics:<\/strong> Determining what is ethical can be challenging due to varying perspectives.<\/li>\n<\/ul>\n\n\n\n
                <\/div>\n\n\n\n

                Tactical Objectives<\/strong><\/h2>\n\n\n\n
                  \n
                • Tactical objectives<\/strong>\u00a0are short-term goals that focus on specific departments or operations. They are typically set for a year or less.<\/li>\n\n\n\n
                • Examples of tactical objectives include:<\/li>\n\n\n\n
                • Survival:<\/strong>\u00a0This is crucial for new businesses or established ones facing challenges like economic downturns or takeover threats.<\/li>\n\n\n\n
                • Sales revenue maximization:<\/strong>\u00a0While important for growth, it should be balanced with profit to ensure long-term sustainability.<\/li>\n<\/ul>\n\n\n\n
                  <\/div>\n\n\n\n

                  Corporate Social Responsibility<\/strong><\/strong><\/h2>\n\n\n\n
                    \n
                  • Corporate Social Responsibility (CSR)<\/strong>\u00a0is a business approach that considers the ethical and environmental impact of its operations on all stakeholders, including employees, customers, shareholders, and the community.<\/li>\n\n\n\n
                  • Key points about CSR:<\/li>\n\n\n\n
                  • Moral obligation:<\/strong>\u00a0Businesses are expected to act ethically and contribute positively to society.<\/li>\n\n\n\n
                  • Stakeholder focus:<\/strong>\u00a0CSR involves meeting the needs and expectations of various stakeholders.<\/li>\n\n\n\n
                  • Environmental responsibility:<\/strong>\u00a0Protecting the environment is a crucial aspect of CSR.<\/li>\n\n\n\n
                  • Competitive advantage:<\/strong>\u00a0Strong CSR can enhance a company’s reputation and attract customers, employees, and investors.<\/li>\n\n\n\n
                  • Challenges:<\/strong>\u00a0Defining and implementing CSR can be complex due to varying societal expectations and global differences.<\/li>\n<\/ul>\n\n\n\n
                    <\/div>\n\n\n\n

                    Factors Affecting Objectives<\/strong><\/h2>\n\n\n\n

                    Internal factors <\/strong><\/strong><\/p>\n\n\n\n

                      \n
                    • Corporate culture (the accepted norms and customs of an organization)<\/li>\n\n\n\n
                    • Type and size of organization<\/li>\n\n\n\n
                    • Private versus public sector organizations<\/li>\n\n\n\n
                    • Age of the business<\/li>\n<\/ul>\n\n\n\n
                      <\/div>\n\n\n\n

                      External factors <\/strong><\/strong><\/p>\n\n\n\n

                        \n
                      • State of the economy<\/li>\n\n\n\n
                      • Government constraints<\/li>\n\n\n\n
                      • The presence and power of pressure groups<\/li>\n\n\n\n
                      • New technologies<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

                        What are Vision Statements? A vision statement outlines an organization’s long-term goals and aspirations.\u00a0It provides a clear direction, inspires employees, and guides decision-making. A strong vision, like Adidas’ “To be the leading sports brand in the world,” can drive significant change. What are Mission Statements? A mission statement declares an organization’s core purpose and values.\u00a0Unlike […]<\/p>\n","protected":false},"featured_media":0,"template":"","subject":[86],"unit":[103],"class_list":["post-3043","notes","type-notes","status-publish","hentry","subject-business-management","unit-unit-1"],"acf":[],"_links":{"self":[{"href":"https:\/\/acmeitsolutions.net\/ibcognito\/wp-json\/wp\/v2\/notes\/3043","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/acmeitsolutions.net\/ibcognito\/wp-json\/wp\/v2\/notes"}],"about":[{"href":"https:\/\/acmeitsolutions.net\/ibcognito\/wp-json\/wp\/v2\/types\/notes"}],"wp:attachment":[{"href":"https:\/\/acmeitsolutions.net\/ibcognito\/wp-json\/wp\/v2\/media?parent=3043"}],"wp:term":[{"taxonomy":"subject","embeddable":true,"href":"https:\/\/acmeitsolutions.net\/ibcognito\/wp-json\/wp\/v2\/subject?post=3043"},{"taxonomy":"unit","embeddable":true,"href":"https:\/\/acmeitsolutions.net\/ibcognito\/wp-json\/wp\/v2\/unit?post=3043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}