FINANCIAL OBJECTIVES VS. STRATEGIC OBJECTIVES

Financial Objectives

Financial Objective means the financial requirements or goals that a company or an organization plan for the future. In simple words it means to set a target how to achieve profit and make more money. But sometimes it also includes the amount of money that is required for a specific goal, the timeframe in which that task must be finished and how to spend the money.

Strategic Objectives

Strategic objectives are one of the most important and an exciting mission of an organisation. For running an organisation successfully the strategic objectives plays a vital role. Any organisation must have to set some policies, rules and regulations to achieve its business targets. Those rules and regulations fall within the definition of strategic objectives. Strategic objectives are always formulated for a longer period of time, not less than three or five years. 

Strategic Objectives are classified into eight major parts.

1. Market standing: It means to check the current position of the organisation in the market and the competitive environment. 
2. Innovation:  While setting the strategic objectives an organisation must has to keep an eye to improve its services and to develop its goods according to the required changes that occurs with the passage of time and to adopt new techniques and methods.
3. Human resources: For the development of an organisation well trained and experienced staff is a very important factor. 
4. Financial resources: To identify the current financial position and the methodologies to utilize it. 
5. Physical resources: To check the equipment and how to use it for the betterment of the organisation. 
6. Productivity:  To use the available sources efficiently. 
7. Responsibility: The approachability to the effects on the widespread community of the stakeholders. 
8. Profit Requirement: To set a target to achieve a required profit rate and to increase it within the resources of the organisation. The above mentioned points shows that an organisation has to focus not only on its internal factors but also has to keep an eye on its environmental factors .The Strategic Objectives are maintained not only to generate profit for the owner of the business but also to give good customer.