Goal - this is what a business wants to achieve over a specific time period. These usually look at the big picture and long time period.

Most businesses goals are:

• Survival
• Breaking Even
• Growing their market share
• Profit
• Deliver good shareholder returns
• Develop new products

Objectives - are shorter term goals a company uses to achieve their long term aim.

Benefits of set objectives:

• Greater sense of direction for the business
• A possible motivational force for employees
• Aids in controlling existing and future operations in a business

Hierarchy of objectives:

• The mission or overall purpose of the business
• Its vision and where it wants to be in the future
• The aims the business has for achieving its mission and vision
• The objectives that are to be put in place to achieve all this

Strategic Objectives - how a business plans to achieve its aims or goals; often a long-term approach.

Tactical Objectives - the day-to-day (short term) objectives needed to ensure the strategic objectives are achieved.

To set objectives you use the SMART method:

Specific- a clear target everyone understands

Measurable- Should contain a type of measurement that decides whether you are successful or have failed

Agreed- All departments within a business should agree on objectives so that there isn't a clash of plans within the business.

Realistic- An objective needs to be achievable or else no one will be motivated to achieve it as they will think it's impossible.

Time-bound- Needs to have a certain time frame within which the objective should be achieved.

A business may have to alter their objectives because of these reasons:

Internal:

• A lack of finance to achieve objectives
• Poor communication within a business
• A conflict of interest between departments of a business
• An industrial dispute with the workforce

External:

• Changes in the law that affect the operation of the business
• The state of the economy
• The behaviour of competitors
• The opinion and behaviour of external stakeholders