Business Aims and Objectives
Business Aims and Objectives
Knowing that you are taking a qualification at Bloomsbury Regional Technical College, you have been approached by several friends who would like you to help with the setting up of their businesses. You enjoy business because the subject constantly changes and you can see the relevance of all that you are learning. You can also apply what you are learning to different situations.
a. Alice is thinking of setting up a small restaurant in a village two miles from the town centre. The setting is attractive. Her restaurant will only cater for a maximum of 36 customers, for whom she wants to serve gourmet food.
b. Perminder wants to create a small charity that locally supports children with cerebral palsy. She represents a network of 30 parents who experience the illness and she wants to make sure that the charity can provide them with many of the resources and experiences they require in order to make their lives more comfortable.
1. You meet both Alice and Perminder for a cup of tea. Explain why organisations need aims and objectives. (P1) Every organisation needs to set aims and objectives to be able to run the business more easily and effectively. Objectives are more like goals, it’s more realistic than aims. Objectives are far more sensible and achievable. Aims are what an organisation wants to achieve. These are long-term plans, probably over next 3 to 5 years. This allows the business to move forward. Objectives set out how the organisation will meet their aims.
2. Describe to Alice and Perminder how they could use their aims and objectives. As you do so, explain the purpose of setting SMART objectives. (P2) An obvious objective for Alice and Perminder is to achieve goals. Precise, measurable targets will help you do this. You will have to concentrate on doing your best as you achieve one goal at a time. You should set these goals using SMART objectives. * Specific- You needs a clear statement about what will do. Usually, it is quantified, which means it has a number in it.
* Measurable – achievement can be checked. Recording your progress and keeping a record of your completed assessments will enable you to measure your achievements
* Achievable – you can attain your target if you work hard. You can do really well if you stretch yourself
* Realistic- your target should be sensible so that you stand a chance of achieving it.
* Time-constrained – every objective should include a date for achievement or review/ these acts as a warning, as well as a spur if you are falling behind.
You either achieve a SMART objective or need a good reason for not doing so. These types of objective are important for managers and employees in a business to measure success in achieving business aims.
3. Produce a mission statement for Alice for her business as well as for Perminder’s charity, alongside a series of objectives.
Many large organisations have a mission statement that briefly identifies the main purpose of the business and how it sees itself.
Alice wants to open a small restaurant in a village two miles from the town centre. The setting is attractive. Her restaurant will only cater for a maximum of 36 customers, for whom she wants to serve gourmet food.
This is known as a privately owned business and will focus on customers, employees. The cost of their products or how they give values for money. Sainsbury’s mission statement is: “Our mission is to be the consumer’s first choice for food, delivering products of outstanding quality and great service at a competitive cost through working ‘faster, simpler and together.”
Alice’s Mission Statement:
‘We take pride in working together to providing the best quality food for our customers of outstanding value to delight our customers’.
Objectives for Alice:
To provide good services and must make a profit to survive, to make sure that you only break even or make a loss for a very short time or the business can fail.
Perminder wants to create a small charity that locally supports children with cerebral palsy. She represents a network of 30 parents who experience the illness and she wants to make sure that the charity can provide them with many of the resources and experiences they require in order to make their lives more comfortable.
This is known as Not- For-Profit and voluntary organisations and focus on the services they provide, the causes they support their aims in helping those in need. For example the mission of the Oxfam International is an ‘international group of independent non-governmental organizations dedicated to fighting poverty and related injustice around the world’. ‘
Perminder’s Mission Statement:
‘Our mission is to support children with cerebral palsy. So that is no longer causing a disability and premature death to children.
Objectives for Perminder:
To raise money that is used to support children. To aim to make surplus, after the cost of the business have been deducted, and reinvest this into the business and the services it offers.