CH4 - Aims and Objectives

Question 1

What is a Business Overall Aim ?

Answer 1

An aim is a long term goal that business is trying to achieve. ( Usually determined by senior executives )

Question 2

What is a Business Objective ?

Answer 2

A business objective helps achieve the overall aim of a business. Objectives can be based on departments such as a HR department having an objective to increase employee satisfaction to help satisfy the business aim.

Question 3

What do Objective provide to a Business?

Answer 3

• A sense of direction for employees
• Provided specific targets for individuals and departments to work with
• Its a mean to asses performance (Success and Failure)

Question 4

Reasons for Business Objectives

Answer 4

• Helps fill the need of good communication in the business
• Provides employees with goals and a sense of direction ( Maslow / Mayo )
• It allows investors to see how the business is progressing and see where the capital and investments are going
• It allows customers to chose which company aliens with their morals and ethics if the business upholds the same one ( i.e. Reduce carbon emissions ) - influences customers

Question 5

What is Profit Satisficing?

Answer 5

Profit Satisficing is when a business makes enough profit to satisfy its shareholders and employees. A business may do it to protect lifestyle as they are happy with the amount of profit, market share and growth the business has/is making.

Question 6

What is CSR?

Answer 6

CSR stands for cooperate social responsibility. Meaning the business is to be ethical and sustainable above and beyond the requirements of the law.

Question 7

Aim/Objective Hierarchy

Answer 7

Aims
Mission Statement
Corporate (Business) Objectives
Divisional Objectives
Departmental Objectives
Individual Targets

Question 8

What is a mission Statement?

Answer 8

A mission statement outlines purpose and reasons for an organisations existence. It describes what the company dose, who for and the value given to customers and stakeholders.

Question 9

What is a Vision statement?

Answer 9

Is a long term aspirations and goals of a business, its what the business wants to achieve, intended to inspire and motivate. The statement rarely changes.

Question 10

Example of vision statement

Answer 10

Audi - To be the brand with the greatest appeal, fascinating customer-relevant innovations and breath-taking design

Question 11

Mission statement

Answer 11

It explains the overall purpose of the business at the given time and they may change over time as the market changes and develops.

Question 12

Mission Statement example

Answer 12

IKEA - To offer a wide range of well - designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.

Question 13

What dose SMART Goals stand for?

Answer 13

Goals that are :
Specific
Measurable
Achievable
Realistic
Time bound

Question 14

What are common objectives ?

Answer 14

• Growth
• Profit Maximisation
• Shareholder Value
• Ethics & Social Responsibility
• Survival

Question 15

What would be an example aim for an independent coffee shop chain

Answer 15

To be the most successful independent chain in the County / Country