Aims and Objectives

Question 1

What are Vision Statements?

Answer 1

It is a description of what a business sets out to
achieve in the medium to long term

Question 2

What do vision statements provide?

Answer 2

The vision statement should provide a clear guide to senior management of the future direction of the business and help to make decisions

Question 3

What is a mission statement?

Answer 3

A mission statement is a brief statement that states the broad aims of a business.

Question 4

What question does a mission statement & vision statement answer?

Answer 4

A mission statement answers the question “Why does my business exist”

A vision statement answers “where do i see my business going”

Question 5

What are the benefits of a mission statement

Answer 5

Helps to ensure that all stakeholders are clear on the
purpose of the business

Helps customers understand the objectives
of the company.

Gives some transparency for investors

Question 6

What are the drawbacks of a mission statement

Answer 6

Not always supported by the actions of a business (to unrealistic)

Often too vague & general

Question 7

What are objectives

Answer 7

Objectives are more precise & detailed statements of the aims/goals

Question 8

What are aims

Answer 8

An aim is a general statement of what the business intends to achieve

Question 9

What are the types of objectives

Answer 9

profit and non-profit, Long-term and short term

Question 10

Give me examples of for profit objectives

Answer 10

Survival

Profit max

Sales max

Growth in market share

Increase share price

Increase in productivity

Question 11

Give me examples of non-profit objectives

Answer 11

To provide services to the local community

To help people which have different needs

To protect the environment

Question 12

What are long-term objectives

Answer 12

Objectives that aim to grow the business in the long-term

Question 13

Give me examples of long-term objectives

Answer 13

Invest in training

Building up their brands

Expanding into new markets

Question 14

What are short term objectives

Answer 14

A firm may want to maximise profits and is not concerned about the long term

Also may have to cut back on certain things such as

Make staff redundant

Change to cheaper suppliers

Increase productivity at the expense of quality

Sells assets

Question 15

Rank me the business objectives

Answer 15

Mission - Highest strategic objective/lowest detail

Corporate

Functional

Unit / Team

Individual - Highest detail objective/lowest strategic

Question 16

Define SMART objectives

Answer 16

Specific - objectives should specify what the business wants to achieve.

Measurable - Objectives should be measured to make sure the objective has been achieved

Achievable - Are the objectives achievable and attainable?

Realistic - Is the business likely to achieve the objectives with the resources available

Time Limited - A time scale needs to be set for the objectives.

Question 17

Define the Factors influencing aims & objectives

Answer 17

Age of the business

Size & legal status

Ownership

State of economy

Competition

Risk and attitude to risk

Question 18

What are the benefits of a vision statement

Answer 18

A clear vision can give the business a clear identity

Can help in setting objectives and support the business
strategy.

Question 19

Give some examples of corporate objectives

Answer 19

Increasing market share

Launching new product

Improving overall productivity

Question 20

How is a mission statement useful to stakeholders

Answer 20

Shareholders/owners/managers - are likely to be very significantly affected as it should guide their everyday decisions and actions.

Employees - may find the mission statement useful because it should provide them guidance with their day-to-day tasks.

Customers - this mission statement is clearly focussed around the service provided for customers and so if they were aware of it, it should help them to understand what the business is about.
Or the customer doesn’t know of it.