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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 ‚Äďbased 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.

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