Objectives and Business Decisions

Objectives in Business Decisions

Influence of Objectives: A business’s objectives can heavily influence the decisions it makes. For instance, a business aiming for rapid growth may decide to invest more heavily in marketing and expansion.
Goal-Oriented Decision Making: Every decision a business makes should ideally contribute towards achieving its objectives. If an objective is to increase profits, decisions about production, pricing, and hiring should reflect this goal.
Decision Hurdles: Some decisions may clash with business objectives. For example, a decision for immediate profit maximisation might hinder long-term sustainability.
Balancing Multiple Objectives: Businesses often need to balance multiple objectives when making decisions. For example, a decision to cut costs may conflict with an objective of improving product quality.

Short-term Decisions: These decisions are usually tactical and operational, relating directly to the day-to-day running of the business. They frequently aim to achieve shorter-term objectives such as meeting sales targets.
Long-term Decisions: These strategic decisions are connected to the broader, long-term objectives of a business, such as expanding market share or developing new products.

Quantitative Objectives: These are measurable goals, like achieving a particular profit margin, increasing revenue by a specific amount, or achieving a defined growth rate. These numbers inform many business decisions.
Qualitative Objectives: Businesses may also have less measurable goals, such as improving reputation or boosting employee satisfaction. These objectives often influence decisions around marketing and HR policies.

Product-oriented Objectives: Some businesses focus on their products when setting objectives and making decisions. For instance, they may aim to develop the best product in the market, influencing decisions around product design and quality control.
Market-oriented Objectives: Other businesses focus more on the market itself. Their decisions may revolve around meeting market demands, beating competitors, or gaining a larger market share.

Ethical Objectives: Businesses with ethical objectives will make decisions that align with these values, often prioritising factors such as fair trade and sustainability over profit maximisation.
Corporate Social Responsibility: Businesses that prioritise CSR will consider the social and environmental impacts of their decisions. This might involve choosing sustainable suppliers or rejecting proposals that lead to job cuts.