4 - Aims, Objectives And Mission Statements

Question 0

What are the importance of business aims

Answer 0

This helps everyone in the company to fully understand what they are required to do within the framework to achieve the business’s overall aim.

Question 1

What are the 6 main aims of a business

Answer 1

1. To make a profit - often the most common aim of all owners and shareholders of a business
2. To increase sales growth - this is where the business aims to increase the amount of goods it sells or services it provides.
3. Expansion - the business could be aiming to sell to new markets, possibly abroad, or if a local business, trying to sell to others cities.
4. Customer satisfaction - need to keep customers satisfied to keep their customers loyalty.
5. Environmentally friendly - as some consumers are looking whether or not a business acts Eco friendly before buying from the business
6. Being ethically and socially responsible - aims normally set up by businesses such as Co-op or body shop. More businesses are following this aim

Question 2

What is a S.M.A.R.T objective

Answer 2

S - specific - objectives are aimed at what the business does.

M - measurable - the business can put a value to the objective

A - achievable - are the objective set achievable and attainable

R - realistic - can the business realistically achieve the objectives

T - time specific - there is a time limit to when the objective should be achieved

Question 3

What is the importance of business objectives

Answer 3

• it shows how the business is trying to meet its aims
• it can motivate the employees as they know what they are trying to achieve. Some business’s offer a buns payment to employees if they meet their objective
• the business as a whole can measure its progress towards the stated aims.

Question 4

Why would a business change its objectives over time

Answer 4

This could be because it has achieved its first objective . E.g survival in the first year may lead to an objective of increasing profit in the second year.

Question 5

What is the importance of a mission statement

Answer 5

A business writes a mission statement to show its vision and values.

This allows all stakeholders to understand the way that the business is trying to operate

It also allows potential employees to decide if they want to work for a business, based on the mission statement and values

Question 6

Give tescos mission statement

Answer 6

Our core purpose is to create value for customers to earn their lifetime loyalty.

Question 7

What is meant by survival

Answer 7

The most important for a new business or an established business facing problems

Question 8

What is profit

Answer 8

Maximisation of profit - main aim of most businesses in the private sector

Public sectors are often non-profit organisations and focus on customer service

Question 9

What is market share

Answer 9

This is the share of the customers available

100% = all customer, 0% = no customers

Question 10

What is meant by providing a service

Answer 10

All businesses will want to provide a service but it it the most important aim for public sectors

Question 11

What is meant by ethical

Answer 11

‘Doing the right thing’ - businesses often have the option to operate in a way which might not be morally right. E.g sweat shops in developing countries to save costs or replacing workers with machines

Poor ethical decisions can lead to bad publicity and a fall in market share due to unhappy customers.

Question 12

What is meant by environmentally friendly

Answer 12

Being ‘green’. Helping or saving the environment. Minimising or eliminating pollution.