A business is any form of entity involved in the sale of goods, services or both to customers. A business idea comes across the mind of the investor, evaluates it and then if worth investing, he commits his funds in it. The owner of the business, apart from funding the business he would set up the norms that control the business operations. A business, therefore, needs to lay down the rules under which it would be operating. These govern how the business operates. When setting up a business, the owner of the business has a goal in mind that he wants to achieve. The goals of the business are also referred to as the objectives of the business. Objectives of business are the results that the business owner hopes to achieve as he tries to run and grow the business.
As a business owner, he needs to set up clear goals because he is concerned on all the aspects of business. Having clear set objectives for the business, it forms the basis on which the business plan is created. Objectives of the business can be created by the owner by observing and evaluating the purpose of setting up a business. They can also be created by studying the mission, vision or the SWOT of the business. Here, we would look at how these can be generated from the above three. Mission of the business the mission statement of the business describes what the business organization is, the reason the business is there and operating, and why the business exists. The mission statement should define who the customers to the business are at a glance. It should also make identification of the services and the products that the business deals with.
At the same time the mission statement should even tell where the business is located, that is the geographical location where the business is operating from. It is, therefore, clear that the mission statement and the objectives of the business have something in common. When a business sets its objectives, it must consider where it is located. The owner should also consider who the customers of the business are, that is, the customer base. The owner must still set objectives of the business that are in line with the products and services that the business is producing. It is, therefore, clear that the objectives of the firm are always in line with the mission statement of the same. Therefore by observing the mission statement of the firm we are placed to develop the objectives of the firm.
Vision of the business
The vision statement of the firm shows the goals of the firm. Therefore, the vision of the business would always show the goals of the business. These goals can be short term or long term goals. The vision statement of the business may be one line or a few lines that describes the main purpose of setting up a business. These goals dictate how a business is going to operate. It is clear that the vision statement is the one that can be used to set the strategic plans of the business. Setting of the strategic plans of a business requires that we observe the objectives of the business. Therefore, the objectives of the business can be developed from the goals of the business. Thence objectives and the goals are on and the same. Therefore, since objectives and goals are the same, then it means that the objectives of the firm can be generated from the vision of the firm.
SWOT Analysis
It is used to identify the weaknesses and strengths of a business entity. It can also be a tool used to identify the threats that the business faces and the opportunities available for it. SWOT Analysis will help the businessman in determining when to move in to new markets and at the same time know where to invest in. The also show the long term survival of the business. This analysis will, therefore, show the strengths of the business, despite showing the weakness of the business. The strengths of the business ere used to generate the goals of the business. It is possible to find a joint between the objectives of the firm and its weaknesses and it strength. The strength of the firm shows how possible the business can develop objectives; therefore the objectives of the business are based on the strength of the business and its possibility of surviving future threats. The business will, therefore, need to develop its objectives base on its strengths.
Conclusion
It is clear that the business objectives, mission statement, vision statement and the SWOT Analysis are intertwined. It is to tell us that the business cannot work without either of these. It, therefore, means that the business could not be in a position to go ahead unless it sets each of these. The conclusion is that, by observing these three, we can develop the objectives of the business.
Reference
Hollett, V. (2006). Business objectives: Fully updated for the international marketplace. Oxford: Oxford University Press.
