Aims and objectives Use in conjunction with the Anglo American case study summary THE TIMES 100

Aims Aims are the long term goals of an organisation “To provide a good return for shareholders ”

THE TIMES 100 Objectives Objectives are medium term targets that act as stepping stones to achieving the aims “To increase profits by 10% in 2011”

THE TIMES 100 Aims and objectives Aims and objectives often relate to: Survival Profit Growth Providing a service Market share Customer satisfaction Ethics and sustainability

THE TIMES 100 Anglo American & Aims Anglo American’s aims centre on its ‘triple bottom line’. What are the three aspects of this?

THE TIMES 100 Changing objectives Organisations may change their objectives over time because... They may achieve their original objectives The business has grown The competitive environment changes The market changes Technology changes

THE TIMES 100 Conflicting objectives Some objectives may conflict. For example: Profit and growth - expansion can increase costs, especially in the short term Providing a service and growth - smaller firms may know their customers better than large firms and therefore be able to provide a more personalised service

THE TIMES 100 Purpose of aims & objectives To provide direction for the organisation To form a basis for allocating resources To be motivational To monitor performance To measure success

THE TIMES 100 Setting objectives The objectives that organisations set will depend on several factors: The overall aims Analysis of business performance, e.g. SWOT analysis Ownership – public sector objectives are more likely to focus on providing a service, whereas private sector firms may focus on profit and growth

THE TIMES 100 SMART objectives SMART objectives make it easier to assess if targets have been met S pecific M easurable A chievable R elevant T ime-framed For example... To achieve a 5% reduction in labour turnover in 2011 compared to 2010

THE TIMES 100 Anglo American and SMART objectives Find two examples of SMART objectives for Anglo American

THE TIMES 100 Strategies A strategy is a long term plan by which the aims and objectives are met

THE TIMES 100 Anglo American and strategy What are Anglo American’s six values that guide its strategy to focus on sustainable development and its triple bottom line?

THE TIMES 100 Tactics Tactics are the shorter term activities that a firm puts in place to implement its strategy

THE TIMES 100 Anglo American and tactics What is one of Anglo American’s tactics to support its strategy of making better use of resources and developing sustainable practices?

THE TIMES 100 Useful resources Aims and objectives lesson suggestions and activities Anglo American case study Anglo American website