Aims and Objectives

Question 1

What is aimed at internal and external stakeholders?

Answer 1

Mission statement.

Question 2

Define ‘mission statement’.

Answer 2

The mission statement shows the business purpose for all internal and external stakeholders, usually written in a persuasive manner.

Question 3

What is aimed at internal stakeholders?

Answer 3

• Vision Statement
• Corporate Aims
• Corporate Objectives (must be SMART)
• Department Objectives (must be SMART)
• Strategies

Question 4

Define ‘vision statement’.

Answer 4

A vision statement outlines the business’s long-term strategic goal for the distant future.

Question 5

Define ‘corporate aims’.

Answer 5

An aim outlines what the business wants to achieve in the long term, usually over five years.

Question 6

Describe an ‘objective’.

Answer 6

An objective is a more specific medium-term target/goal which will identify how to meet the aim. Objectives must be SMART.

Question 7

Describe a ‘strategy’.

Answer 7

A strategy is the step-by-step plan on how to achieve the objective.

Question 8

What does SMART mean?

Answer 8

• Specific: Be precise about what the business wants to do.
• Measurable: So the business knows whether the objective was met.
• Agreed: So managers and employees are in it together (MBOs).
• Realistic: They shouldn’t be overambitious.
• Time framed: So the business knows exactly when they should be completed by.

Question 9

Why are mission statements/aims/objectives useful to a business and its stakeholders?

Answer 9

• Give a clear direction for the company and all stakeholders.
• Give awareness about the business to all internal and external stakeholders.
• Managers & employees may be more willing to work for the business if they know the direction of the business.
• Can motivate workers as mission and vision statements are written to be inspirational. Meeting objectives could come with rewards (Vroom, Mazlow self-esteem) and objectives are useful for staff appraisal.
• Everyone is working in one direction, so fewer mistakes, more focus. Better quality output.
• More profit for shareholders as everyone is driven towards the main goal.

Question 10

Why are mission statements/aims/objectives no useful to a business and its stakeholders?

Answer 10

• Some mission statements and vision statements are more about PR (public relations) than meaningful statements of the organisation’s aims and are used to attract customers only.
• If the statements and objectives are unrealistic or just used for PR, employees may pay little attention to them.
• Mission statements, vision statements and objectives will only have value if everyone in the firm supports them and knows them.
• External factors may affect the progress in achieving these goals e.g. new competition, state of the economy so they may need reviewing.
• If the business acts differently to its mission statement and vision statement, this can cause negative publicity and show that they are not used properly.

Question 11

How would you evaluate the usefulness of these?

Answer 11

The usefulness depends on:
- whether all managers and employees are aware of them and follow them.
- whether meeting them is possible; if not, employees may become demotivated if their performance appraisal is based upon meeting the objectives.