Mission Statements/ Business Aims GCSE Business Studies

Mission Statement A mission statement summarises the overall objectives of a company. Examples of mission statements are: “to provide our customers with safe, good value, point-to-point air services. To effect and to offer a consistent and reliable product and fares appealing to leisure and business markets on a range of European routes. To achieve this we will develop our people and establish lasting relationships with our suppliers.” Easyjet ‘McDonald’s aim to be the UK’s best fast service restaurant experience.’

Business Aims The main business aims are: Survival Profit Maximisation Growth Corporate Image/Public service Concern for the Environment/Social Responsibility

Survival A business is likely to have survival as a central aim: When it starts up During difficult economic conditions

Profit Maximisation This is typically the central aim of any business. A business will have the aim of making a profit which: Allows the owner/s to have a certain standard of living Improves from one year to the next

Growth A business is likely to have this aim when: it has been established in the current market it is making sufficient profits to finance the expansion

Corporate Image and Public Service A business will want to be viewed in a positive light by: Customers Suppliers Other companies Having a positive corporate image should lead to customer loyalty, increased sales and profits. Public service is the main aim of public sector organisations.

Concern for the Environment/ Social Responsibility Concern for the environment and social responsibility have become increasingly important. Business has legal obligations not to damage the environment. A business can gain a positive corporate image by working towards achieving this aim.

SMART Business aims should be SMART: Specific Measurable Achievable Realistic Time-bound

Aims in Conflict Some aims which a business has can appear to conflict, for example: Profit maximisation versus concern for the environment/social responsibility Growth versus concern for the environment/social responsibility

Aims of Private, Public and Social Enterprise Organisations Private Sector Profit Growth Corporate image Concern for environment/ social responsibility Public Sector Public service Covering costs - break even

Why are Aims Helpful? Give direction and a common purpose for management and staff Useful in the context of forward planning Will help the firm with decision making

Ethical and Moral Issues Associated with Business Aims A business will want to make a profit but should also be ethical and moral in its practices, for example: Treat employees fairly Deal honestly with customers Refuse to deal with companies/countries where workers are exploited Reduce, reuse and recycle