Aims, Objectives, Strategies & Tactics (DP IB Business Management)
Revision Note
Written by: Lisa Eades
Reviewed by: Steve Vorster
An Introduction to Business Aims & Objectives
Aims and objectives serve as a guide for the businesses' overall strategy and direction, helping to focus efforts and resources toward a common purpose
Business aims are the long-term aspirations of an organisation
Business objectives are specific, measurable, achievable, relevant, and time-bound targets (SMART targets) that must be achieved to realise those aspirations
Aims and objectives align the efforts of all employees towards a common vision and ensure that everyone is working towards the same goals
They are critical for businesses to function effectively and achieve long-term success
E.g. A business aim may be to become the market leader in a particular industry
The corresponding objectives may include increasing sales by 25% over the next three years, improving customer satisfaction by 15%, and expanding into new geographic markets
There is a hierarchy of objectives which cascade downwards
Diagram: the hierarchy of objectives
A businesses strategic objectives are determined by its overall aim
Strategic objectives then determine tactical and operational objectives which detail the achievable goals a business and its functions want to achieve over a specified period of time
The Hierarchy of Objectives for an Independent Coffee Shop Chain
Component | Explanation | Example |
|---|---|---|
Aim |
| To be the most successful independent coffee shop chain in the country |
Strategic Objective |
| To have the highest market share of independent coffee shops in the country |
Tactical Objective |
| To hire, train and retain sufficient members to ensure prompt, knowledgeable and engaging customer service in all coffee shops |
Operational Objective |
| To reduce average queue times to less than 2 minutes per customer in all coffee shops |
Vision Statement & Mission Statement
A mission statement outlines the fundamental purpose and reason for an organisation's existence
It describes what the company does, who it serves, and how it provides value to its customers or stakeholders
A vision statement articulates the long-term aspirations and future goals of the business
A Comparison of Mission Statements and Vision Statements
Mission Statements | Vision Statements |
|---|---|
|
|
Examiner Tips and Tricks
Vision statements and mission statements are often dismissed as marketing tactics that say little about the real-world impact of a business.
Increasingly, though, brands are reporting on the progress they are making towards fulfilling their mission and acknowledging where changes in the external environment require adjustments to be made. A good example of this is provided by Honest Tea whose 2020 Mission Report explains the challenges the business faced during the pandemic and the necessary changes to its overall mission over the following years.
Last updated:
You've read 0 of your 5 free revision notes this week
Sign up now. It’s free!
Did this page help you?
