SUMMERY "USING OBJECTIVES AND STRATEGIES"

Objectives:the goals or targets should be achieved in order to realise the aims of the organisation.
Corporate objectives:the goals of the whole organisation.(coordinate the business and to give the sense of the direction)
Functional objectives:the targets of each of the functional areas of the organisation based on corporate objectives.(ensure that authority can be delegated without loss of coordination)

Relationship between corporate objectives and functional objectives:
--SURVIVAL:functional objectives are to assist the business to be survival(For example:choosing the appropriate stock in order to reduce the waste of the raw materials and it will increase the profit per unit)
--PROFIT MAXIMISATION:functional objectives will assist the business will its profit(increase capacity utilisation,makes the capacity efficient and reduce labour turnover and absenteeism)
--GROWTH MAXIMISATION:increase the share to increase the finance,and expand the market if necessary and more training programmers)
--DIVERSIFICATION:develop niche market to order to provide additional finance to overcome cash-flow problems and to achieve economics of scale(when there is a high output,the average cost per unit is lower)
FUNCTIONAL OBJECTIVES ARE MADE TO ENSURE THE CORPORATE OBJECTIVES ARE MET


SMART OBJECTIVES:
S--SPECIFIC:clearly defined
M--MEASURABLE:quantifiable(should have a certain number which the business are able to achieve)
A--AGREED(achievement):the managers and subordinates are involved into the targets
R--REALISTIC:the objectives should be realistic and no conflict with other objectives
T--TIME SCALE:which the business should have the time limitation

BUSINESS STRATEGICS
STRATEGY:the long-term or medium-term plans designed to achieve the objectives

RELATIONSHIP BETWEEN FUNCTIONAL OBJECTIVES AND STRATEGIES