Key Idea: Businesses use vision, mission and objectives to guide decisions and strategy. Vision sets long-term direction, mission defines current purpose, and objectives translate these into measurable targets — and IB exams test your ability to link all three.
🔭 Direction: Vision → where the business wants to be. Mission → what the business does now. Broad and qualitative.
🎯 Targets: Objectives → measurable outcomes. Short to medium term. Quantitative and specific.
💰 Financial objectives: Profit maximisation. Revenue growth. Cost reduction. Increase market share.
🌍 Non-financial objectives: Customer satisfaction. Employee wellbeing. Sustainability goals. Corporate social responsibility (CSR).
If asked to explain SMART, do not just list it. You must explain WHY it improves performance or decision-making.
Important: Students describe vision or mission when the question asks for objectives. Always check command terms carefully.
Example: Point → Explain → Apply → Impact. Example: A SMART objective is measurable, meaning progress can be tracked, which allows managers to adjust strategies if targets are not being met.
Important: Explain SMART objectives, distinguish between vision/mission/objectives, or analyse how objectives influence business decisions.
- Identify whether the question is about vision, mission or objectives
- Use correct definition
- Apply to the business
- Explain impact on decisions or performance