aims and objectives

Question 1

what is a business aim?

Answer 1

what business wants to achieve in future and they tend to be quite generic and broad. set goals out for business.

Question 2

what is a vision statement?

Answer 2

description of what a business sets out to achieve in medium to long term. provides clear guide to senior management of future direction of business.

Question 3

advantages of vision statement?

Answer 3

gives business identity/ethos.
helps in setting objectives.
focuses senior management.
improve employee engagement.

Question 4

what is an objective?

Answer 4

more specific and measurable targets business will set to achieve aims.

Question 5

what 6 groups can aims and objectives be categorised into?

Answer 5

survival
profit maximisation
sales maximisation
growth
increasing shareholder value
social responsibility.

Question 6

what are SMART objectives?

Answer 6

specific - everyone understands.
measurable - numeric.
achievable - unrealistic can be demotivating.
realistic - are resources available?
timely - need good timescale.

Question 7

advantages of SMART objectives?

Answer 7

more precise
more quantifiable
easier to use
enable feedback and learning.

Question 8

what is a mission statement?

Answer 8

broad statement of aims and values guiding everyday operations and decision making of a business.

Question 9

advantages of mission statement?

Answer 9

ensures employees are clear so everyone can be focused on goals/objectives.
helps with strategic planning.
gives transparency for shareholders.
customers can understand ethics/objectives of business.

Question 10

disadvantages of mission statement?

Answer 10

may not be important as often vague and often not achieved.
values may only be important to internal stakeholders.
employees won’t deal with it on daily basis.
customers unlikely to be aware of it.

Question 11

what does usefulness of vision statement depend on?

Answer 11

accuracy
achievability
honesty
motivation
clarity
decision making