Strategy illustration Strategy theory

Aims and objectives

Business activity is focused around the achievement of business aims and business objectives.

A business aim is the goal a business wants to achieve. A primary aim for all business organisations is to add value and in the private sector this involves making a profit. More strategic aims include expansion, market leadership and brand building.

A business objective is a detailed picture of a step you plan to take in order to achieve a stated aim. These need to be SMART in order for the business to know what progress it has made towards achieving the objective:

Specific - clear and easy to understand.

Measurable - i.e. able to be quantified.

Achievable - possible to be attained.

Realistic - not 'pie in the sky'.

Time bound - associated with a specific time period.

Public sector organisations like the Inland Revenue set objectives for service, such as processing customers' tax returns within a given time period.

Private sector organisations like Kelloggs might set objectives for customer satisfaction, and effectiveness in handling customer orders within a given time period.

Objectives within an organisation are established at a number of levels from top level corporate objectives, down to team objectives and individual objectives that create a framework for operational activities. These are often translated into targets which help to motivate staff in reaching short-term goals.

Objectives therefore provide a clear structure for all of the various activities that an organisation carries out. By measuring how well an objective has or has not been achieved, managers can make necessary changes to their activities to ensure progress and achievement of the stated objectives are made within the timescale allocated.

 

Supporting Documents

These downloads will help to put strategy theory into context using real world examples from real businesses.

Using the marketing mix in the fashion industry
Ben Sherman logo

Find out how Ben Sherman applied strategy theory to prosper in the fashion industry by downloading our premium case study.

Entering a new market with a new product
Experian logo

Learn how Experian applied strategy theory to prosper in the financial services industry by downloading our premium case study.

Meeting customers' needs
Travis Perkins logo

Learn how Travis Perkins applied strategy theory to thrive in the construction industry by downloading our premium case study.

Re-focussing a company's culture and marketing mix
Argos logo

Discover how Argos used strategy theory to thrive in the retail industry by downloading our premium case study.

Using the marketing mix to drive change
Parcelforce Worldwide logo

Learn how Parcelforce Worldwide used strategy theory to thrive in the logistics industry by downloading our premium case study.

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