Business aims objectives and values LEARNING OUTCOMES FOR

Business aims, objectives, and values

LEARNING OUTCOMES FOR THIS LESSON • Explain the relationship between aims, objectives, values, and plans. • Identify Michelin’s mission and its economic objectives. • Understand the importance of organisational values.

INTRODUCTION • Michelin is the world's leading tyre producer with almost a fifth of the market share. • It employs around 125, 000 people worldwide. • Michelin, like many big companies, sets out its aims to show what it wants to achieve and how it will try to do so.

AIMS AND OBJECTIVES • Aims and objectives are the 'ends' that an organisation seeks to achieve. • It then has to draw up a plan and devise a strategy. • Most organisations have general or overall aims which they can break down into specific objectives, or targets. • By setting aims and objectives, companies give themselves a sense of purpose and direction. • Michelin's mission is 'to make a sustainable contribution to progress in the mobility of people and goods by constantly enhancing freedom of movement, safety, efficiency and pleasure when on the move. '

MICHELIN VALUES • Every organisation benefits from establishing a set of values that encapsulate its basic beliefs. • These values shape relationships within the organisation and whoever the organisation meets.

MEETING NEEDS • Michelin continually innovates to bring benefits to all stakeholders. • An example is the Pax System which allows tyres function at zero pressure, allowing drivers to get to a garage. It means no more need for spares.

CONCLUSION • To better improve mobility and safety Michelin has established clear aims and objectives. • These help to give a clear direction to the company, and to its managers and employees. • They are linked to both Michelin's values and the needs of their stakeholders.

ASSESSMENT OF LEARNING OUTCOMES • How well can you explain the relationship between aims, objectives, values, and plans? • How well can you identify Michelin’s mission and its economic objectives? • How well do you understand the importance of organisational values?