| What are Aims, Mission Statements and Objectives | Aims: States the long term goal for the Business. The purpose
Mission Statement: Describes the aims of the Business
Objectives: Specific and measurable targets to help achieve the Aim |
| Some examples of Objectives? | -Survival. Entrepreneurs may struggle their idea wasn't as good, or the market was too tough making it hard to make profit.
-Profit Maximisation. Profit is usually the main objective as well its a reward for the Owners for putting time and effort in.
-Market Shares/Sales Maximisation. Businesses may focus on increasing their market share, or even becoming the market leader
-Growth. Again a majority of businesses want to grow. This can increase Profits and the Value of the Business. Growth can be local, national or international.
-Social/Ethical Responsibility. Businesses are aware of their impact or responsibilities on Society, and change to it
-Customer Satisfaction. Businesses ride on the train to provide quality serives/goods to their customers
-Shareholder Value. The Shareholders notice how their dividend pay will be. Or the Share Price |
| What does objectives do to the Business? | -Direction; Clear objectives equals a direction the business should go on. eg should it expand or not?
-Focus for Employees; Make sure all employees focus the objective. This increases efficiency as well they know what they are doing
-Allows Planning; The Business Plan will be created via the Business Objectives.
-Measurements of Success; Objectives equals, is it going good. If its following it then yes it is |
| What can affect the Objectives? | -Size of the Business; 1/2 businesses that are created fail in the first 5 years. Survival and Customer Satisfaction is critical
-Level of Competition; If there is not that much competition, it can focus on Profits or maintaining its Market Share
-Type of Businesses; Non-Profit Organisations may focus more on Ethnic or Social Objectives. Sole-Traders may focus on Survival. |
| Why do Objectives change overtime? [Internal] | -Business has finished one Objective [eg Survive for a decade] and now wants to change up on Profit
-Change in Views via owners/shareholders, or the Board of Directors. [e.g they want to become more Green] |
| What do Objectives change overtime? [External] | -New competitor may challenge the Business. It switches to Survival
-The Economic Environment could change. It could be the perfect/horrible time to expand
-Technology changes. If a rival business brings out a new piece before you do
-The Environment is being focused more and more, bringing pressure to some businesses [car businesses, oil businesses etc] |
