1.1 Objectives

Business

It is an organization that produces goods and services to satisfy the needs and wants of

consumers.

·         Needs are the basic requirements for survival such as food, shelter and clothing.

·         Wants are desires such as purchasing a sports car, holidays abroad, better house, etc. Wants are unlimited.

Private sector

It is the part of a country’s economy run by private individuals and organizations. The main

objective of this sector is to earn profit.

Public sector

It is the part of a country’s economy concerned with providing various government services. The

main objective of this sector is to provide health care, education, etc.

Stakeholders

An individual or organization that has a stake or interest in the business. E.g. owner invests

capital in the business with the interest of getting profit in return.

Internal stakeholders:

·         Owners

·         Managers

·         Employees

External stakeholders:

·         Shareholders

·         Customers

·         Suppliers

·         Government

·         Local community

·         Financiers

Mission statement

It is a clear vision of a business regarding what it is going to achieve in the short and long terms

and the reason for its existence.

Purpose of a mission statement:

1.      Helps a business to focus

2.      Provides a plan for the future

3.      Makes the stakeholders clear about the goals a business is striving to achieve

4.      Motivates workers

5.      Ensures some transparency for the investors

Objectives

The goals or targets set by businesses that focus on the short and long terms. Business objectives

should be SMART.

Importance of objectives as SMART objectives:

Specific – Goals should be as specific as possible

Measurable – Capable of numeric measurement

Achievable – Attainable by the stakeholders

Realistic – Given time frame and resources should be realistic

Timely – Objectives should have a future deadline

Strategic objective

It is a statement vaguely stating the long-term vision of a company and its goal over the next few

years.

Tactical objective

It is a clear statement of a business describing how it is going to achieve its strategic objectives.

Private sector objectives:

·         Maximizing profit

·         Survival

·         Growth

·         Maximizing market share

·         Image and social responsibility

Public sector objectives:

·         Providing services to the community

·         Creating employment

·         Improvising the infrastructure of the country

·         Building more schools and hospitals

·         Reducing crime rates

N.B.   "It’s time to set your goals"

Good Luck!