• A business should establish realistic and measurable objectives so they can plan activities and operations that aim to guide them to achieve these goals.
• Businesses generally adopt a SMART approach to setting objectives:
• S: specific (clear, precise and relate to specific elements of the business)
• M: measurable (developing controls to measure extent to which its been achieved)
• A: achievable (needs to have financial & HR resources necessary)
• R: realistic
• T: timed (establish a time frame for it to be achieved)

Examples:

• Increase market share: selling more of a product in an existing market by encouraging an increase in demand; reducing production prices; improving product quality.
• Expand existing markets: selling existing goods and services to new customers by opening in another location or diversifying advertising.
• Expanding the product range: product mix. Tastes change over time and the total range of products offered by a business must change too.
• New markets i.e. diversification: moving into an entirely new line of business and new products targeted at new customers.
• Maximising customer service: responding to customer needs. Service, training of staff to meet needs of customer, keeping data on customer buying pattern.