2. 3 Levels of Objective Setting
Strategic objectives: are long-term organisational goals
that help to convert a mission statement from a broad
vision into more specific plans and projects. Set by
Management.
https://www.google.co.nz/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-
8#q=strategic+objectives (22 June 2015)
Example:
- Where they want the company to be in 5 - 10 years
- Overtake key rivals on quality or customer service or product
performance
- Attain stronger foothold in local and national market
- Increase share in market by a certain percentage e.g. 10%
- For a small business (or large) it may be to own their own
building
3. 3 Levels of Objective Setting
Intermediate objectives: these are the short
term plans i.e. within the Financial Year, these
are the responsibility of Middle
Management. When setting these objectives
they will take into account the Strategic
objectives of the Organisation.
http://businesprinciplestraceycooper.weebly.com/3-levels-of-business-
objectives.html (22 June 2015)
Example:
- Ties in to the Strategic objectives
- To increase market share by 2% in one year
4. 3 Levels of Objective Setting
Operational objectives: these are Daily,
Weekly or Monthly targets and these are
derived from the Intermediate objectives.
http://businessprinciplestraceycooper.weebly.com/3-levels-of-business-
objectives.html (22 June 2015)
Example:
- These objectives will be set by targets for individuals or
groups to help achieve the intermediate and therefore
strategic objectives (KPI’s) e.g. sales targets, etc
5. INTERNALFACTORS
STRENGTHS
what your business does well that gives you
an advantage over your competitors and how
it helps you reach your objectives
WEAKNESSES
what are things your business doesn’t do
well, room for improvement, things that will
hinder the organisation from reaching its
objectives
- Skilled staff
- Market share/monopoly
- Established brand
- Differentiation
- Unskilled/inexperienced staff
- Reputation
- High turnover of staff
- New business
- Poor management
EXTERNALFACTORS
OPPORTUNITIES
a factor in the external environment that
would help the business reach its goals and
objectives
THREATS
a factor in the external environment that
would hinder the business reach its goals and
objectives
- New technology
- Government, Legislation e.g. Free Trade
Agreement; Patent;
- Networks
- Demographics, e.g. social behaviours, trends,
- New technology
- Government, Legislation e.g. Free Trade
Agreement; Patent;
- Competitors within the same/similar market
- Economic climate e.g. boom/recession
- Non-economic climate e.g. weather; ebola
- Social behaviours
SWOT Analysis
A method used as part of a Business Strategic Planning to analyse its resources and external environment; can help gauge the
health of a business. From this analysis a business can then build their strategic plan.
6. PEST Analysis
External environment factors that could impact on business operations outside the organisation
P - Political These are factors that include government regulations and laws that define both formal
and informal rules which a business has to undertake. For example:
-Health & safety laws - Employment laws
-Tax policy - Competition laws
-Environmental regulations - Consumer protection
-Economic Factors
E - Economical These factors affect purchasing power of potential customers and the cost of a business'
capital. Examples of this are:
-Interest rates - Unemployment
-Globalisation - Inflation
-Exchange rates - Economic growth
S - Social Social factors affect both the demographic and cultural aspects of the external
environment. They also affect both workers and consumers as well as the customers needs
and the size of potential markets. Some of these factors are:
-Ethical issues - Demographics
-Career attitudes - Emphasis on safety
-Environmental concern
T - Technological With the ever changing face of technology today it can be both room for opportunities or
threats for organizations. These factors can lower barriers to entry, reduce production
levels, as well as influence outsourcing decisions such as:
-Marketing - Communication
-Production methods - Technology incentives
-Rate of technological change
