aims and objectives Flashcards
what is a vision statement
description of what the business sets out to achive in the MEDIUM/ LONG TERM
- clear guide to the senior managment where resources should be allocated and what strategic decisions should eb going towards
- defines core values where a business is heading
benefits of a vision statement
clear vision can guev the business a xlear identity and ethos
helos setting strategic decisions
- focuses managment on tasks needed to achieve the vision
communicates with employees their role in helping to achieve the vision
-commits resources to achieving vision
what is a mission statment
broad statment of its aims and values guidws evety day opetations and decision making
WHAT IT WANTS TO DO IN THE PRESENT
A mission statement is a brief statement that encapsulates the broad aims of a business. It helps all employees, as well as the wider world, to understand what the business is about. It will guide the everyday operations and decision making of a business.
foundation of overall stratedgy, clear statmenr of purpose
present day fous of how they intend to achive corporate objectives
reaons for a mission statment
- helps ensure all stakeholders are clear on the purpose of the business so eveyone can be focused on the same goals and objecttives
- helps with strategic planning
helps customers understand ethics and objectives - gives transparency for investors how intent to use capital
what are business aims
aims are what the bu7siness wants to achive in the futurte, targets/ goals, tend to be generic
what are objectives
more specific measurable targets business sets to achieve aims
e.g. aim - increase sales, number of sales targets - onjective in order too achieve aim
what are the key aims and objectives
- survivial
- market share and growth
- increasing shareholder value
-profit maximisation
-CSR
survival
business aims to survive in the short term by gaining loyal customers , establishing positive reputation ( objectives )
- avoid failure, potentially reposition selfs in market
-avoid failure during economic downturns
profit max
-seek profitable return on investment, higher return then comprititors
can compare financial measures such as ROCE or gross profit margin to see how well business is managed compared to compeititors to maximise profits
long term profit will motivate investors and employees encouraging additional investment and helping secure jobs
growth and market share
long term aqim of businesses increase market power able to influence market prices in turn achieving other objectives and lng term success
this is done by reinvesting profits to fund expansion
objective is to attract new customers and gain share over competitiors
increasing shareholder value
if increase share price on stock market increase money flowing into the business making th business seem more valuable and reputable
improve investor confidence
senior managment often have bonuses for increasing shareholder price
if valur falls puts risk of take over by competitor
CSR
consider inpact upon society to minimise negative backlash and reduction in sales it may have as modern businesses are expected to be respectful towards socirty and take ethical and environmenal responsiibilties seriously.
although can screutenise profits via resources being sustainsably sourced, workers being paid fair wage
what are SMART objectives
SMART objectives are specific, measurable, achievable, realistic, and time-bound/ limited, goals that businesses set to guide their actions and measure progress effectively.
specific
objectives must be clear so that all managers and employees know what they are trying to achieve
measurable
objectives should be able to be measured e.g. progress/ achieved or compared to competitiors should be numeric
