Business definition

Business Definition: Business defines the business of the firm with respect to the customer needs, target markets, and alternative technologies. With the help of business definition, one can ascertain the strategic business choices, Organizational structuring and restructuring also depends upon the business definition.

 

BUSINESS MODEL

Business model is a plan for the effective operation of the business. Business model is process of identifying sources of income, desired customer base, and financial details. There can be different business model in same industry. Rival firms, operating in the same industry can rely on the different business model due to their strategic choice.

 

Meaning of objective

Objective should be smart, specific- hierarchical, congruent among organizational units, Measurable-Quantitative, Achievable-Obtainable, Realistic-Understandable,

Time bound-Challenging,

Each objective should also be associated with a time line.

Difference between Goal and Objective

Base	Goal	Base	Objective
End results	Goals are the end results, that the organization attempts to achieve.	Time based measurable target	Objectives are time-based measurable targets, which help in the accomplishment of goals.
Open Ended	Goals are open-ended attributes that denote the future states or outcomes	Close ended	Objectives are close-ended attributes which are precise and expressed in specific terms.
Goals are short term and long term	Goals are set in respect of both short term and long term	Objectives are specific	Objectives are more specific and translate the goals in to both long term and short term perspective
Organizational wise	Every organization have set goal to achieve	Departmental wise	Every department have set objectives to achieve for achieving end goals of organization
Goal is fixed	Generally goal are fixed	Unending process	The pursuit of objectives is a never-ending process such that organizations sustain themselves. They provide meaning and sense of direction to organizational endeavour
Goals are achieved Through objectives	Goals are set and achieved through set Objective	Objectives are achieved through structure of the organization	Organizational structure and activities are designed and resources are allocated around the objectives to facilitate their achievement
Goals are Performance target	Goals are set to measure the performance target of organization	Benchmark for guiding objectives	Objectives also act as benchmarks for guiding organizational activity and for evaluating how the organization is performing

 

 

Characteristics of objective

Objectives with strategic focus relate to outcomes that strengthen an organization’s overall business position and competitive vitality.

• Objectives are time –based measurable targets
• Objectives help in accomplishment of goals

Objectives, to be meaningful in order to serve the intended role, must possess the following characteristics:

OBJECTIVE

1.            Objectives should define the organization’s relationship with its environment.

2.            Basis for strategic decision-making.

3.            Joiner of all resources within the constraints of organizational resources and external environment.

4.            Establish standards for performance appraisal.

5.            Concrete and specific

6.            Challenging.

7.            Time frame related.

8.            Initiative and facilitative towards achievement of mission and purpose.

9.            Value crated is measurable and controllable.

10.         Expression of Different objectives should correlate with each other.

 

 

 

 

Short-term Objective

Short-range objectives can be identical to long-range objectives of an organization. If a company achieves the target in short run then only company will be able to achieve its objective in long run. So short term objective too will be in respect of:

• Profitability ,
• Productivity,
• Relationship with employees,
• Over all competitive Position achievement ,
• Fostering Employee Development,
• Inheriting Public Responsibility,
• Technological Leadership,

For instance, if a company has an objective of 15 percent growth in profit every year and is currently achieving this objective, then the company’s long-range and short-range objectives for increasing profits coincide. The most important situation in which short-range objectives differ from long-range objectives occurs when managers are trying to elevate organizational performance and cannot reach the long-range target in just one year. Short-range objectives then serve as steps toward achieving long term objective.