What are the different types of strategic business objectives?

Some companies adopt ethical or ecological policies as a strategic objective.

Strategic business objectives can be related to increasing profitability, market share, brand visibility, changing consumer perceptions, and ethics. They are often measurable and can be short-term or long-term. Certain types of goals are aimed at non-financial goals, such as improving the circumstances of a specific population group or accessing essential resources. Nonprofits typically have these types of goals, which are not intended to increase net income.

The strategic business objectives of a non-profit community are often very different from those of a for-profit company.

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 specific product line. For example, a company might set a goal to increase sales by 10% in a certain region. Another example of a financial objective would be to increase the market share of a product line by 12% over the course of a year.

Strategic marketing-related business objectives can complement profitability goals. For example, increasing brand visibility for a product line can result in higher short-term and long-term sales. If the company is able to keep its production costs low enough, the proportion of the increase in sales will cause net profitability to increase. As more customers try and adopt the product, loyalty can be established, which can lead to long-term growth.

Positioning is another strategic business technique that establishes a brand’s unique characteristics in the consumer’s mind. Companies may want to change the way their products or services are seen in the market. In highly competitive industries, where the product can be easily replaced, positioning is a way to eliminate competitor activity, increase market share, and maintain customer loyalty. Examples of market positioning in the retail sector could be offering “everyday low prices” or a “hassle-free” shopping experience.

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Included in the types of strategic business objectives is the goal of improving service levels. The company may want to increase the number of customers who receive a solution to their problems the first time they contact the company’s service department. Another objective may be to incorporate personalization to improve the customer’s level of service. 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 example, you may want to change production processes to become more eco-friendly. Nonprofit organizations often focus on goals that seek to solve a sociological problem or ameliorate an inhuman condition. An example would be a homeless shelter that wants to increase the number of families that become self-sufficient in six months by 5%.

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