Strategic objectives are objectives that set out what the business are trying to achieve. They can set set at two levels:
Corporate level: These objectives are ones that include the business as a whole. For example, 'Our Company's top line goal is to increase our annual income by 15% for every year.'
Functional level: These objectives are set out to improve on an area of assigned responsibilities of the chosen division of the business. Additionally the objectives are usually set after the corporate objectives have been set.
Financial objectives are the business' financial future plans and needs. To set these goals the business will need to do corporate financial planning. This is when the the business decides what the company needs to do with their finance under economic circumstances. The main financial objective of any company will be to make an income, but apart from this the objectives will set out how much the company will need to earn and how much to spend.
For a new business the first financial objective will be to survive because most new businesses do not develop beyond their initial ideas enough or they can't and the investor does not believe that there is a future for the product as there isn't much to work on, so this will cause the collapse of the business, as there will be no money being made and then the business will run out of money. For a business to survive it will need to be able to pay off the debts that has required them to buy the building blocks for their business, such as raw materials, rent and wages. So a new business will need a adequate amount of money and a reasonable business model. Once survival has been accomplished, profit will be the next financial objective. For a new business to make an acceptable amount of profit, the business will need to add value to it's company and it will need to be able go into other areas of the market.
Corporate level: These objectives are ones that include the business as a whole. For example, 'Our Company's top line goal is to increase our annual income by 15% for every year.'
Functional level: These objectives are set out to improve on an area of assigned responsibilities of the chosen division of the business. Additionally the objectives are usually set after the corporate objectives have been set.
Financial objectives are the business' financial future plans and needs. To set these goals the business will need to do corporate financial planning. This is when the the business decides what the company needs to do with their finance under economic circumstances. The main financial objective of any company will be to make an income, but apart from this the objectives will set out how much the company will need to earn and how much to spend.
For a new business the first financial objective will be to survive because most new businesses do not develop beyond their initial ideas enough or they can't and the investor does not believe that there is a future for the product as there isn't much to work on, so this will cause the collapse of the business, as there will be no money being made and then the business will run out of money. For a business to survive it will need to be able to pay off the debts that has required them to buy the building blocks for their business, such as raw materials, rent and wages. So a new business will need a adequate amount of money and a reasonable business model. Once survival has been accomplished, profit will be the next financial objective. For a new business to make an acceptable amount of profit, the business will need to add value to it's company and it will need to be able go into other areas of the market.
