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In this task, I will be explaining what aims and objectives are and why they are relatively important to small and large organisations.
A Mission Statement is a statement which consists of both the aims and objectives; it explains the main purpose of the business and the activities it is doing to achieve this.
Aim of any successfully can be described as long term goals that they want to achieve e.g. expanding the business globally.
Objectives give the business a clearly defined target; they are goals that are achieved in the short term. Objectives can help to motivate the employees working within an organisation, as this will help in profit maximisation.
Examples of Aims and Objectives for any business are as follows:
To expand the business after one year
To increase sales year after year
To increase profit maximisation
To survive whilst trading in the business
To achieve 50% market share within the business in a short period of time.
To be environmentally friendly.
While trying to achieve the objectives keep customers happy.
Aims and Objectives for three different types of sectors within business organisations; they are:
Privately Owned Businesses = they provide goods and services, and must make a profit to survive.
Firms in the private sector include:
Private and Public Limited Companies
Examples of Aims and Objectives for this sector involve the following:
Maximise profits by increasing sales and reducing costs
Increase market share
Expand the business
Increase numbers of customers
Improve product quality
An example of a Privately Owned Business is Tesco; where there Mission Statement is “We create value for customers to earn their lifetime loyalty”.
Public Owned Organisations = this sector involves organisations being owned by the government. Many organisations provide services free of charge or below the cost price this can be such as the NHS or even the Royal Mail where they are being run by the government but aim to be profitable.
Businesses in the Public Sector include:
Transport for London
The Royal Mail
Examples of Aims are as follows:
Improve service provision
Operate within budget, that is, break even
Meet customer targets, for example, patient waiting times
Keeping costs low as possible
Not for Profit and Voluntary Organisations = these are businesses that are run for ‘not for profit’ operations and focus on providing a service and helping those who are in need. Any organisation in this sector does not aim to generate a profit. They aim to make a surplus.
Firms in this sector include:
The British Red Cross
Cancer Research UK
Aims here are:
Increase range of services
Increase revenue from donations
P2: Describe the purpose for the business in setting aims and objectives.
Objectives are more specific than aims. They are set over the short to medium term. Objectives are necessary because aims in themselves are too general and may be quite overwhelming.
In order to set any objectives for a business organisation; they need to make sure they are SMART Objectives.
SMART Objectives are objectives:
Specific = Objectives should specify what they want to achieve
Measurable = You should be able to measure whether the objective or not
Achievable = Are the objective you set achievable?
Realistic = Can you realistically achieve the objective?
Time Constrained = When do you what to achieve the set objectives?
Why are SMART objective important to any business?
SMART objectives are clear, precise and have proven to be an effective way to achieve business aims. If businesses set SMART objectives they are more likely to achieve their long term goals quicker because they have a straight forward objective that they will try to achieve rather then an over complicated or vague one which may be interpreted differently by different people.
Any business to success must have clear – cut objective.
When the business set objective there must be taken into consideration whether this objective are proper for the business.
When the business sets objectives they should be aware that they should achieve that aim.
Your objective should be realistic and it should not be fake and should be achievable
You should also be aware that when you be able to achieve your aim.
P3: Write aims and objective for a selected business.
Aims for the sandwich shop are:
To make a good profit
To provide good healthy food at reasonably prices
To survive in business
To be environmentally friendly
To buy his raw materials at a reasonably prices.
Objective of the sandwich shop are:
To provide variety of food.
To recycle 10kg of recyclable material in the 1st 6 months
To make a sustainable profit in the first year of trading.
To gain 10% market share within the first 12 months of trading.
I have chosen these aims and objectives because I want people to eat healthy food at not junk food and at the same time make profit, because if you don’t make as much profit as possible you could get bankrupt and you would have to close your shop, so it is important to stay in business, we also keep our prices at competitive as compared to junk food, this will keep some consumers away from junk food. You should also keep to hygienic environment to attract more customers. If more customers turn up you would make a lot of profit.
M1: Compare the aims and objective of different businesses
Private limited company – Asda aims and objective – To provide goods/services those are cheap and affordable to consumers or the public. Reducing the cost objectives of their items/products.
Public limited company – Royal mail Aims and objective – To achieve jointly established health and safety targets within an agreed time period. To promote sustainable improvement through directly involving Royal Mail’s Area Management Teams and the Trade Unions (TUs) in the management of health and safety.
Non-profit organisation – Oxfam aims and objective – If you set out a clear list of objectives at the beginning of your campaign, it makes creating and running the campaign much easier. The objectives of your mail campaign should be measurable, realistic and timed.
Asda was started in the late 20th century. Asda is a major employer in the UK that includes students, part time, full time staff. A superstore is defined as one with 25,000 square feet or more of selling area. Asda even began upgrading its warehouse stores to meet the standards of design appeal and fresh – food selections set by its major competitors. Asda is the United Kingdom’s third largest food retailer on the market. Asda is a 24 hour supermarket. Asda has competitions with Sainsbury, Tesco and Morrison but they are still strong. Asda provides basic necessity at a lower price, and at the same time making a Hugh profit.
The other hand Royal mail is the national postal services of the United Kingdom. Royal mail was founded in 1516 in UK. Royal mail is responsible for mail collection and delivery in the UK. Royal mail delivered 84 millions items every working day. Royal mail had an operation profit of £321m with all four group businesses in a full year profit for the first time. Royal mail services were first made available to the public by Charles 1 on 31st July 1635. Royal mail employees a Hugh number of people.
Oxfam has over 14 organisations working with over 3,000 partners in around 100 countries. Oxfam was set up in 1942 during World War II. People from all over the world collected parcels of food and clothes to send to families whose lives had been destroyed by the war.
Let’s do comparison with the selected businesses.
My selection is based on three sectors which are private sectors, public sector and non – profitable sector. I will compare there aims and objectives. Asda is to provide goods/services those that are cheap and affordable to the consumers, reducing the cost of the products. Asda is trying to make a profit by make more attraction in the shop so people can come and buy stuff that are affordable to people. Comparing that to royal mail. Royal mail is the world’s biggest postal company compared to Asda, royal mail has over a 100 branches in the UK. Asda has the same amount of branches in the UK because it is owned by American company called Wal – mart. Comparing Asda and royal mail to Oxfam. Oxfam is totally different to both the companies because Oxfam is a non – profitable company it means that they make no profit and they donate things to poor countries. So not all companies are same they all are totally different because they have different aims and objective different employees and many more others things. Like Asda, royal mail and Oxfam all have different thing in common like some are profit makers and some aren’t.
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