The Aims and Objectives of Businesses
Jan 29, 2016
The Aims and Objectives of Businesses
All Businesses can have….
• Mission statements
• Aims
&
• Objectives
…the main purpose of a business is stated in a….
Mission statement
Mission statements
…by reading a mission statement you can usually tell what a
business actually does!
Microsoft’s Mission statement
Bill Gates has said that Microsoft’s mission is….
“taking the internet, combining it with great software and turning that into the most
powerful tool of all time”.
Mission statements
You should be able to tell that
Microsoft is involved with the
internet, computers and
software development!
British Airway’s Mission statement
…is “to be the undisputed leader in world travel”
British Airway’s Mission statement
...from this you should know that British Airways operates in the travel market.
British Airway’s Mission statement
…but it is
not very clear about which type of
travel
(except for the fact there is the word ‘Airways’
in the Company name!)
…it is one thing to state a mission or a purpose
but another to achieve it.
To achieve its purpose, a business must have….
•Aimsthe goals the business wants to achieve
•Objectivespractical steps to achieve the goals
- usually quantified (measurable)
Aims
Aims….
In business the main aims are usually
• Survival
• Profit maximisation
• Growth
Many businesses have some or all of the following aims….
• making a profit
• providing goods and services to the local community
• surviving
• expanding (see ppt on growth)
• maximising sales
• improving quality of product
• improving quality of service
• providing a highly competitive service
• providing a charitable service
• providing a voluntary service
• being environmentally friendly
British Airways Aim
“being the airline of first choice in key markets”
Objectives
Objectives are measurable...
a business needs to identify specific practical targets it needs to
accomplish in order to achieve its aims.
These are called OBJECTIVES
Objectives are quantified...
So that success can be easily measured.
Eg British Airways could have an objective
“to increase sales of air tickets to business passengers by 5% a year
in Europe”
Aims Vs Objectives
Aims• are long term
• more subjective
• not easily measured
Objectives• are short term
• more objective
• easily measured
SMART
Objectives
SMART OBJECTIVESAre
–S specific
–M measurable
–A agreed
–R realistic
–T time constrained
Evaluating performance
Decide aims
Specify objectives
Work towards objectives
Check performance regularly
If unsatisfactory
Take corrective action
Adjust/review objectives
Change aims
How to check aims and objectives
The Aims and Objectives of Businesses