what is a business objective:
A business objective is, in the world of business, a result or purpose that you want to achieve, to which efforts are directed and which aims to improve or stabilize the effectiveness and efficiency of this kind of entities.
Examples of business objectives
To show examples of business objectives, it is necessary to distinguish between the different types of objectives that are usually set in an empresa:
Examples of objectives of a company are: increase profitability, be the leader of the market and increase sales. Examples of specific objectives of a company can be: get an annual return of 20% or boost quarterly sales by 15%.
According to the scope at the time of the objectives, strategic, tactical and operational objectives may be:
Examples of strategic goals: achieve the leadership of sales of automotive in Mexico within a period of 5 years, opened three new branches in the eastern part of the country in 4 years.
An example of tactical objective could be: halving the distance with the leader of the automotive market during the next two years.
In this sense, some examples of operational objective are: increasing by 5% production of the Department of painting over the next 6 months or reduce returns for customers by 15% during the next quarter.
Characteristics of a business objective
In spite of that there are different types of business goals, in a generic way can be identified a number of characteristics. One of them is the clarity and specificity. Other features is realism, i.e., the objectives must be attainable, while at the same time they should be able to generate a level of sufficient motivation. In addition, business objectives should be somehow measurable in quantitative terms, to facilitate the function of evaluation and control.
Functions of a business objective
To highlight the importance of business objectives, it may indicate some of its functions. One of them is to guide and coordinate the taking of decisions and actions that are carried out within the company at different levels. In addition, the objectives are a reference point for evaluation and control of the results.
Business objectives also help to motivate the workers of the company, allowing them to discover, clarify and identify the results that are expected to achieve. In the same way, allow to inform external elements of the company the purposes and intentions of the entity.