Post on 02-Apr-2015
Year 12 - Unit 1
Business Aims, Objectives and Organisation
September 5th 2008
*Keywords sheet will be used throughout lessons – stick in front of note books
Look out for every opportunity to fill them in!
Learning Objective
To learn what are typical aims and objectives of business organisations.
Learning Outcomes
All of you will be able describe what a mission, aim & objective is.
Most of you will be able to give examples of business objectives.
Some of you will be able to suggest how a business can meet its objectives.
Starter
“A business is an organisation which provides goods or services for its customers”
Differences between goods and services. This will help in finding a businesses direction.
Activity: BIN CHUCKING!
It might be easier to look at it this way:Do the following businesses provide
goods or services or both?1. Thomas Cook2. Cadbury’s3. Direct Line Motor Insurance4. Coca-Cola5. Ferrari6. Tesco
Mission
A mission statement is a formal statement setting out the aims of the business.
E.g. Microsoft’s mission statement is...“To enable people and businesses throughout the world to realize their
full potential.”
On a Mission
Can you guess which companies have the following missions…
“To make people happy.”
Disney
“To refresh the world”
Coca-Cola“To bring inspiration &
innovation to every athlete in The world.*
*If you have a body you are an athlete
Nike
The Type of Business determines the Aims and Objectives it sets
Mining, farming, market gardening, fishing, forestry
Fruit into pies or juice, wood into chipboard, metal into cars
Not manufactured – catering, shops, insurance, travel, advertising
1. Primary: Extracting natural resources. Raw
materials
2. Secondary: Manufacturing Products. Processing raw materials into manufactured products
3. Tertiary: Providing Services
Businesses are generally put into 1 of 3
Industrial Sectors:
The Type of Business cont...
OwnershipKey word/term Definition Examples
•Public Sector
•Private Sector
Public corporations - Post Office, BBCGovt. Dept – Civil ServiceLocal Authorities - Councils
Sole Traders PartnershipsFranchisesLimited Companies
Government owned or govt. Controlled bodies. Restricted by government guidelines – ‘value for money’ rather than large profits. Job opportunities & secure employmentDirectly or indirectly in private ownership. General aims are to maximise sales, profits and market share.
Activity break
Take 5 minutes to fill in the table with as many businesses/companies you can list on the activity sheet 1
Aims
Aims are what a business set out to achieve
The most important aim of a private business is to make a profit by sellingor providing products to people who will pay for them.
If a private business does not make a profit, they will get into trouble financially and will eventually go bankrupt.
Aims: generally long term but can change through the years...1955 Aims: To survive in business for first year, To sell as many good as possible, To make a profit, To concentrate on selling to the local community
21st Century Aims:To expand and beat the worldwide competitionTo Maximise sales and profitTo help charitiesTo be environmentally friendly
Corporate social responsibilities/sustainability
Objectives
The objectives are the goals a business sets itself in order to achieve it’s aims
An objective is a short-term goal or target which will help to achieve an aim.
An objective must be measurable, so that a business can tell what has been achieved.
Check point!
An Aim or purpose expresses, in general terms, what the __________ sets out to do in the _____ term
An Objective is a specific ____ the business wishes to achieve to meet the _ _ _
A Business will succeed in its _ _ _ through the achievement of a variety of __________’s
Linking Aims & Objectives
Each aim may have several objectives, e.g. a company who wishes to dominate the market, may have the following objectives:Introduce new productsImprove the efficiency of the advertisingRaise money to develop new productRaise money for new premisesRecruit a new marketing manager
Review Activity – 20 mins
In pairs, choose either:1. An Existing Business/Company (where you or
someone you know works or would like to) or2. Invent your own Business/Company
You are the new Marketing ManagerCreate a 4 slide presentation to show:Page 1: Logo & short intro (which sector is it?, where based?
public or private?)
Page 2: Old business AIMS plus new improved onesPage 3: Existing Objectives vs. new improved onesPage 4: Create a new Mission Statement
Perspective onObjectives...
Making a Profit
“The profit of a business is the income from the sale of it’s products minus the running costs”
An important business objective is to maximise sales, which in turn creates profit
Profit Making OrganisationsProfit provides: Resources for business expansion
A reward or return on investment from the owners /shareholders in the form of dividends
Making a profit will be one of the main objectives of the business
Sales revenue – cost of sales = gross profitGross Profit – Overheads = Net ProfitsDividends are paid to the shareholders from the net profit
Perspective on Objectives cont..
Non –Profit making organisationsSome examples...
A non-profit organisation will not have ‘making a profit’ as one of their objectives
It will want to cover its costs and in some cases make a ‘surplus’
Why? Think about a charity or a public corporation (BBC)
Perspective on Objectives cont...
Growth – Increasing Sales & Market Share
Beating the competition may be a businesses main objective – the survival of the business may depend on it.
A weak Business can be a prime target for a takeover by another business
Survival – Objectives can work against each other Price cutting for growth can cut profits
Perspectives on Objectives cont..
Activity – Survival of the fittest
A number of businesses are cutting prices in order to increase market share..
1. Find out the lowest price of a sliced loaf of white bread from a supermarket and the price charged by a local corner shop
- What is the difference?- Why is there a difference?- What might happen to the business as a result?
2. Can you think of any other businesses which carry out cost cutting like this? What are those businesses aiming to do?
Up next...Providing quality (as an objective)Corporate Responsibility ObjectivesCaring for the environment –
sustainability
Internal stakeholders : the workplace and it’s culture