Page 60 - Cambridge IGCSE Business Studies
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Cambridge IGCSE Business Studies Section 1 Understanding business activity
■ Achievable and Agreed – the airline seat occupancy objective needs to be discussed
with the Marketing Department as it will need to decide on promotional activities to
see that the objective is met.
■ Realistic and Relevant – the airline seat occupancy objective will need
financial resources, perhaps for an advertising campaign. The objective is
relevant to the marketing manager, but less relevant to the human resources
manager.
■ Time-specific – the airline may set an objective to achieve average seat occupancy
of 85% within the next 18 months.
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Figure 5.1 SMART objectives
Setting objectives helps managers to develop a plan for the business. Th e plan will
Business plan: see also list the resources needed in order to achieve the objectives.
Chapter 3, page 29.
Different business objectives
How do businesses decide on their objectives? New businesses, for example, are
likely to have a different set of objectives from established businesses. Th e most
common business objectives are concerned with survival, profit, growth, market
share and corporate social responsibility.
