Major types of Objectives

Major types of Objectives

Major types of Objectives

Objectives are an organization’s performance targets — the results and outcomes it wants to achieve. They are a call for results that connect directly to the company’s – strategic vision and core values.

There are basically two types of objectives. These are as follows:-

Strategic Objectives: Strategic objectives relate to outcomes that strengthen an organization’s overall business position and competitive vitality. As for an example: A bigger market share.

The strategic objectives of a company are as follows:-

  • A bigger market share;
  • Lower costs relative to key competitors;
  • Broader product line than rivals;
  • Better internet and c-commerce sells capability than rivals;
  • Superior on-time delivery;
  • A strong brand name;
  • Superior customer service;
  • Stronger global sales capabilities;
  • Recognition as a leader in technology;
  • Higher customer satisfaction.

Financial Objectives: Financial objectives relate to the financial performance targets that management has established for the organization to achieve. As for an example: Bigger profit margins.

The financial objectives of a company are as follows:-

  • Higher dividends;
  • Bigger profit margins;
  • Higher returns of invested capital;
  • Attractive economic value-added programs;
  • Bigger cash flow;
  • A rising stock price.