Zusammenfassung der Ressource
1.3 - Setting business aims and objectives
- Keywords
- Aim - A general goal of the business e.g. Apple's aims is a society without cash
- Objective - A specific target set for a business to achieve e.g. Apple may want to introduce apple pay to all mobiles
- Public sector organisations - Owned by the government
- Private sector organisations - Owned by individuals
- The purpose of setting objectives
- Helps with making decisions and setting
priorities
- Helps investors evaluate the direction the
business is going in
- Provide targets so everyone can compare actual
and planned results
- Can act as a motivator
- Survival is important for a new business
or a business that needs to survive when
people have less money
- Earning a profit is a long-term
objective of all businesses. without
profit a business can close
- Shareholder value
- Shareholders employ managers to run the business with aim of making rewards.
Profits are generated to pay dividends (a payment made on each share)
- The better the business is run the more demand there will be for shares,
shareholders can sell shares for greater value than paid (increase shareholder
value)
- Customer satisfaction and market share
- Businesses can set objectives to reach a
specific level of customer satisfaction
- Satisfied customers mean more people buying
products
- Market share is the measure of sales of a
product or business as a percentage of the
total market sales
- Sale of product x 100
total market share
- Businesses set themselves a percentage of
market share they hope to achieve. e.g. Aldi had
increased market share by 2.2% in 3 years
- Market share =
- Growth
- When a business wants to open more shops, sell more products
or increase revenue. Growth can be national or international
- Demand and costs c=need to be looked at carefully to ensure growth can succeed
- E.g. Subway has a growth target of 100,000 stores worldwide by 2030
- Being Ethical
- Ethics are what is regarded as right or wrong (morally)
e.g. paying reasonable wages and respecting customers
- Benefits to the business include positive media, drawbacks are increased costs
- E.g. Starbucks uses recycled paper for cups and reduces water usage
- Environmental and sustianability targets
- Businesses can try to ensure their activities do not damage
the environment e.g. Objectives could be to recycle or use
renewable resources
- Effective objectives
- They should state what the target is, when it should be
completed, who has to achieve it and how to do so
- The must be achievable
- People: The business will probably need staff
- Money; They need to be able to afford certain resources and finances fort he target
- Equipment: Must have the machinery and facilities needed
- Not-for-profit organisations
- private sector organisations mainly have profit as main
objective but not for profit ones e.g. charities have other
objectives e.g. to help a certain cause
- Changing objectives - Often linked to the development of a business
- At the start of a business, survival is the objective e.g. sell
products to cover costs
- As business gets bigger there will be other objectives
e.g. profit
- Using objectives to measure success
- Actual performance can be compared to objective to see how far the
buisiness has come the business can then review performance and make
informed decisions