Nov 30 2023

Setting a clear purpose and objectives in the strategy

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Setting a clear purpose and objectives is the first and most fundamental part of the planning process. A clear purpose and objectives give direction to your work and help you focus your efforts on achieving the desired results. In this chapter, we will explore how you can come up with a clear purpose and objectives for your business planning.

Ett frågetecken

Understanding of Aims and Objectives

Purpose:The purpose is the overall reason why you carry out the planning. It answers the question "Why are we doing this?" and provides an overall orientation. The company's purpose is often summarized in its "business idea" and describes what the company aims to achieve at a broad level.

Goal:Goals are specific achievements or results that you want to achieve. They are quantifiable and measurable and answer the question "What do we want to achieve?". Goals give you concrete benchmarks to work towards and make it possible to assess whether you have succeeded.

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Steps to Determine Purpose and Goals


1. Reflect on the purpose of the company: Start by reflecting on your company's overall purpose and why it exists. What is its core mission and values? This will help you understand the larger context of your goals.

2. Identify challenges and opportunities: Take the time to identify the challenges and opportunities your business faces. What are the key obstacles that must be overcome, and where are the best opportunities for growth and success?

3. Set specific goals: Formulate clear, specific and measurable goals. Use the SMART criteria: Goals must be Specific, Measurable, Attainable, Relevant and Time-bound. For example, instead of saying "Increase sales", you can say "Increase sales by 10% in the coming year".

Read more about SMART goals...

4. Prioritize the Goals: If you have multiple goals, prioritize them in order of importance and urgency. Which goals are most critical and should be prioritized first?

5. Communicate the Goals: Share your goals with your team and other relevant stakeholders. Everyone should be aware of what is being achieved and why it is important.

Read more about communication in business planning...


Example: A Company's Purpose and Goals

Let's take an example to clarify the process. Suppose you run an organic food business with the aim of promoting healthy and sustainable food. A possible goal could be: "Increase the company's sales of organic products by 15% in the coming year to promote healthy and environmentally friendly eating habits."

In this example, the aim is to promote healthy and sustainable food, while the goal is to increase sales by a specific percentage increase. This provides clear direction and measurability to the company's efforts.



Establishing a clear purpose and goal is fundamental to business planning. By understanding your company's purpose, identifying challenges and opportunities, and formulating specific and measurable goals, you will have a strong foundation for creating an effective plan that leads to success. In the next chapter, we will explore how you can develop strategies to achieve your goals.


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