Learn something new every day
More Info... by email
Strategic business objectives can be related to increasing profitability, market share, brand visibility, changing consumers' perceptions, and ethics. They are often measurable and can be short-term or long-term. Certain types of objectives are aimed at non-financial goals, such as improving a specific population group's circumstances or access to essential resources. Non-profit organizations typically make these types of objectives, which are not focused on increasing net profit.
Financial strategic business objectives are some of the most prevalent types. They can be related to increasing profitability for a specific period, such as a year, or for a particular product line. For example, a company may establish the goal of growing sales by 10 percent in a certain region. Another example of a financial objective would be to increase market share for a product line by 12 percent over the course of a year.
Strategic business objectives related to marketing can complement profitability goals. For instance, elevating the brand visibility for a product line may result in a larger amount of short-term and long-term sales volume. If the company is able to keep its production costs low enough, the proportion of increased sales will cause net profitability to rise. As more customers try and adopt the product, loyalty may be established, which may lead to long-term growth.
Positioning is another strategic business technique that establishes the unique characteristics of a brand in the mind of the consumer. Companies may wish to change the way their products or services are perceived in the marketplace. In highly competitive industries where the product may be easily substituted, positioning is a way to starve off competitor activity, increase market share, and sustain customer loyalty. Examples of market positioning in the retail industry might be offering "everyday low prices" or a "hassle-free" shopping experience.
Included in the types of strategic business objectives is the goal of improving service levels. The company may wish to increase the number of customers that receive a resolution to their problems the first time they contact the firm's service department. Another objective might be incorporating personalization to improve the customer's service level. Reducing the number of complaints a company receives about its product is yet another type of strategic objective related to customer service.
Ethical concerns can shape a company's strategic business objectives. For instance, it may want to change production processes in order to become more environmentally friendly. Non-profit organizations often focus on objectives that seek to solve a sociological problem or improve an inhumane condition. An example would be a homeless shelter that wishes to increase the amount of families that obtain self-sufficiency within six months by 5 percent.
One of our editors will review your suggestion and make changes if warranted. Note that depending on the number of suggestions we receive, this can take anywhere from a few hours to a few days. Thank you for helping to improve wiseGEEK!