1.1 Business Objectives

• What are business objectives?

  Specific, measurable targets
• Objectives provide direction and focus
• Business objectives aid in measuring performance.
• Match the business objective with its description:

  Profit Maximization ↔️ Increasing revenue while minimizing costs

  Market Share Growth ↔️ Expanding the company's percentage of the market

  Social Responsibility ↔️ Contributing positively to society and the environment

  Survival ↔️ Sustaining business operations during challenges
• Profit maximization is represented as $\text{Profit} =$$\text{Revenue} - \text{Costs}$, where profit equals revenue
• Steps in the hierarchy of business objectives

  1️⃣ Strategic Objectives

  2️⃣ Tactical Objectives

  3️⃣ Operational Objectives
• Match the objective type with its timeframe and level:

  Strategic ↔️ 3-5 years, Top Management

  Tactical ↔️ 1 year, Middle Management

  Operational ↔️ 3 months, Lower Management
• What is the formula for sales growth?

  $\frac{\text{End Sales} - \text{Start Sales}}{\text{Start Sales}} \times 100$
• Profit maximization involves increasing revenue and minimizing costs
• Business objectives provide direction and motivate employees.
• Objectives guide decision-making and strategic planning
• What is the formula for profit maximization?

  $Profit =$$Revenue - Costs$
• Market share growth involves expanding the company's market percentage
• Social responsibility aims to contribute positively to society and the environment.
• Match the business objective with its description:

  Profit Maximization ↔️ Maximizing profits by reducing costs

  Market Share Growth ↔️ Expanding the company's market percentage

  Social Responsibility ↔️ Contributing to society and the environment

  Survival ↔️ Sustaining operations during challenges
• Arrange the types of business objectives in the hierarchy from strategic to tactical to operational:

  1️⃣ Strategic

  2️⃣ Tactical

  3️⃣ Operational
• A strategic objective may aim to increase market share by 20%
• What is the focus of operational objectives in the hierarchy of business objectives?

  Daily tasks
• Business objectives provide a clear roadmap for decision-making.
• Aligned objectives motivate employees and boost their engagement
• Match the business objective with its strategic decision impact:

  Profit Maximization ↔️ Invest in cost-cutting technology

  Market Share Growth ↔️ Invest in marketing campaigns
• A company focused on profit maximization may invest in cost reduction and efficiency improvements
• What is the strategic decision impact of market share growth as a business objective?

  Increased marketing
• Social responsibility may lead to sustainable practices and community engagement.
• A company focused on Profit Maximization may invest in cost-cutting technology
• Profit Maximization often leads to cost reduction and efficiency improvements.
• Market Share Growth may involve increased marketing and new product launches
• Social Responsibility involves sustainable practices and community engagement.
• During economic challenges, Survival may require cost-cutting and restructuring
• Match the Business Objectives with their Strategic Decision Impact:

  1️⃣ Profit Maximization

  2️⃣ Cost reduction, efficiency improvements

  3️⃣ Market Share Growth

  4️⃣ Increased marketing, new product launches

  5️⃣ Social Responsibility

  6️⃣ Sustainable practices, community engagement

  7️⃣ Survival

  8️⃣ Cost-cutting, restructuring
• Business Objectives guide decision-making and strategic planning within a company.
• What is the formula for Profit Maximization?

  $Profit =$$Revenue - Costs$
• Social Responsibility involves contributing positively to society and the environment
• Match the Business Objective Type with its Description and Example:

  Profit Maximization ↔️ Increasing revenue while minimizing costs | Cut production costs by 15%

  Market Share Growth ↔️ Expanding the company's percentage of the total market | Increase market share from 20% to 25%

  Social Responsibility ↔️ Contributing positively to society and the environment | Reduce carbon emissions by 30%

  Survival ↔️ Sustaining business operations during economic challenges | Maintain current sales levels
• Strategic objectives are short-term goals set by lower management.

  False
• SMART Objectives are specific, measurable, achievable, relevant, and time-bound
• A SMART Objective must be specific and well-defined.
• What is the purpose of making an objective measurable in SMART goals?

  Track quantitative progress
• Relevance in SMART Objectives means aligning with overall business strategy.
• SMART Objectives are targets that are specific, measurable, achievable, relevant, and time-bound