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Functional objectives

GCSE, AS, A-Level
AQA, Edexcel, OCR, IB

Last updated 22 Mar 2021

Functional objectives are those that relate to the specific functions of a business (e.g. marketing, operations, HRM, finance) and which are designed to support the achievement of corporate objectives.

A well-established business will divide its activities into several business functions. These traditionally include areas such as:

  • Finance & administration
  • Marketing & sales
  • Production & operations
  • Human resource management

Whilst each of these functional areas requires specialist expertise, their activities are not carried out in isolation from the rest of the business. It is vital in your studies to consider the ways in which the functional activities are connected to each other.

However, it is common for each functional area to be set its own objectives, which should be consistent with the higher-level corporate objectives.

So, functional objectives are:

Set for each major business function and are designed to ensure that the corporate objectives are achieved

Consider some example objectives for the marketing function. Examples of functional marketing objectives” might include:

  • We aim to build customer database of at least 250,000 households within the next 12 months
  • We aim to achieve a market share of 10%
  • We aim to achieve 75% customer awareness of our brand in our target markets

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