The Aims and Objectives of Businesses All Businesses

The Aims and Objectives of Businesses

All Businesses can have…. • Mission statements • Aims & • Objectives

…the main purpose of a business is stated in a…. Mission statement

Mission statements …by reading a mission statement you can usually tell what a business actually does!

Microsoft’s Mission statement Bill Gates has said that Microsoft’s mission is…. “taking the internet, combining it with great software and turning that into the most powerful tool of all time”.

Mission statements You should be able to tell that Microsoft is involved with the internet, computers and software development!

British Airway’s Mission statement …is “to be the undisputed leader in world travel”

British Airway’s Mission statement. . . from this you should know that British Airways operates in the travel market.

British Airway’s Mission statement …but it is not very clear about which type of travel (except for the fact there is the word ‘Airways’ in the Company name!)

…it is one thing to state a mission or a purpose but another to achieve it.

To achieve its purpose, a business must have…. • Aims the goals the business wants to achieve • Objectives practical steps to achieve the goals - usually quantified (measurable)

Aims

Aims…. In business the main aims are usually • Survival • Profit maximisation • Growth

Many businesses have some or all of the following aims…. • making a profit • providing goods and services to the local community • surviving • expanding (see ppt on growth) • maximising sales • improving quality of product • improving quality of service • providing a highly competitive service • providing a charitable service • providing a voluntary service • being environmentally friendly

British Airways Aim “being the airline of first choice in key markets”

Objectives

Objectives are measurable. . . a business needs to identify specific practical targets it needs to accomplish in order to achieve its aims. These are called OBJECTIVES

Objectives are quantified. . . So that success can be easily measured. Eg British Airways could have an objective “to increase sales of air tickets to business passengers by 5% a year in Europe”

Aims Vs Objectives Aims Objectives • are long term • are short term • more subjective • more objective • not easily measured • easily measured

SMART Objectives

SMART OBJECTIVES Are –S –M –A –R –T specific measurable agreed realistic time constrained

Evaluating performance

Specify objectives Decide aims Work towards objectives How to check aims and objectives Check performance regularly If unsatisfactory Take corrective action Change aims Adjust/review objectives

The Aims and Objectives of Businesses