Business Definition

What is our business? What will it be? What should it be?

Example :- Time keeping business

Dimensions of business Definitions

Customer functions

Alternative technologies Mechanical / quartz technology

Customer groups Children, men or Women

Levels at which Business is defined

Corporate Level SBU

Business Model

Could be defined as A representation of firms underlying core logic and strategic choices for creating and capturing value within a value Network. Total description of Business which the company is in. Expressed in the form of organization makes money. Examples-Walmart,Dell,Google,Amazone. Aptech Project Vidya.

Goals and Objectives

Goals Denote what an organization hopes to accomplish in a future period of time. Broad category of financial and nonfinancial are addressed by goals. Objectives are the ends that state specifically how the goals shall be achieved.

Goals:A goal defines the end toward which

effort is directed.

Relationship Between Goals and Objectives

GOAL

Objective

Objective

Objective

Organization objectives.

achieve

each

goal

by

completing

Three Types of Goal Setting

Uniform goals Performance-based goals Potential-based goals

Uniform Goals Definition

A single goal is set for all organizations within the Company. Every organization is expected to meet the same goal.

Performance-based Goals Definition

Every organization is given a goal that reflects an increment on last years performance Increments are chosen to represent equal effort for organizations at different starting points

Potential-based Goals Definition

An external criterion is used to assess a sub-organizations potential

Demographics can be related to rating

styles, e.g.,
Urban vs rural customers New England, the Midwest, and the South vs

the coasts Women vs Men, Old vs Young

Competitive pressures may limit the

potential of a sub-organization Geographic characteristics may limit or promote an organizations effectiveness

Role of objectives
Objectives define the organization relationship with its environment Objectives help an organization pursue its vision and mission. Objectives provide the basis for strategic decision making Objectives provides standards for performance Appraisal.

Characteristics of objectives

Objectives should be understandable Objectives should be concrete and specific. Objectives should be related to a time frame. Objectives should be Measurable and Controllable. Objectives should be challenging Different objectives should correlate with each other. Objectives should be set within Constraints.

Issues in Objective Setting

Specificity Multiplicity Periodicity Verifiability Reality Quality

How objectives are formulated?

The forces in the environment Realities of Enterprise and internal power relationships The value system of the top executive Awareness by the management

Comparison of GOALS and OBJECTIVES

Goal Meaning: The purpose toward which an endeavor is directed. Objective Something that one's efforts or actions are intended to attain or accomplish; purpose; target.

Example:

I want to achieve success in the field of genetic research and do what no one has ever done. Generic action

I want to complete this thesis on genetic research by the end of this month. Specific action

Action: Measure:

Goals may not be strictly measurable or tangible. Longer term

Must be measurable and tangible. Mid to short term

Time frame:

Thank You