Today’s Lesson To be able to identify different Aims and objectives To describe the aims of public and voluntary sector businesses To describe the aims of private sector businesses To be able to describe different strategic options.

Aims and Objectives Aims give a general sense of direction for planning. Eg: Ryan Air: To be Europe’s leading low-cost airline. The objectives break down the aims into more specific targets. Eg Ryan Air objectives: To undercut the fares of rivals To take over other similar airlines To increase sales To increase destinations flown to each year

SMART AIMS Specific Measurable Achievable Realistic Time related Example: England wants to win the 2007 Rugby World Cup

Quantitative analysis – based on numbers What is happening to sales – rising or falling? How do sales compare to this time last year? What is our current market share? How do our prices compare to our rivals? Are our profits rising or falling? Have the costs of running the business risen in the past year compared to last year?

Qualitative analysis – about feelings, instincts, trends - more emotional! Are our customers still satisfied with the range of products and services we offer? How do specific pressure groups view us? Do we think that our competition has a competitive edge on us because they use technology more effectively?

ACTIVITY Search for a voluntary sector organisation and try to find what its strategic aims and objectives are. Look for ‘about us’ or ‘Corporate information’ on their websites. Focus on how they fund raise and what they want to do with the money they receive

QUALITY ASSURANCE – public and voluntary sector A very important aim to most organisations. It refers to something or somebody doing what is expected of them. Eg: your local council is responsible for ensuring the bins are emptied every week.

ACTIVITY – Primary Health Care Trusts Look at the Tunbridge Wells & Maidstone Health Care Trust and describe how they have fallen short of delivering quality to their patients and the community as a whole. What specific aims have they NOT met?

PROVISION AT OR BELOW COST – public and voluntary sector The Government provide a lot of services below cost: Free bus and rail passes Free eye testing and free prescriptions Free hospital treatment ACTIVITY – please give more examples

Increasing revenue and cutting costs Improving the product Raising prices Lower prices in the hope you sell more Spend more on advertising a product

Cutting Costs Reduce the number of staff you employ Cut down on fixed costs – switch lights and heating off when possible Reduce wastage of resources (paperless office) Change staff contracts

PROFIT MAXIMISATION – PRIVATE SECTOR Make the highest profit possible! Sometimes this has to be sacrificed for short term objectives eg: investing in new stores/branches abroad. This will secure long term profits.

SURVIVAL – Private Sector ACTIVITY New businesses can threaten the survival of existing ones. Can you give examples in the following categories: Books Clothing Airlines

BREAKEVEN – Private Sector The need for businesses to cover their costs with their revenues – Raw materials (variable costs) Staff wages (semi-variable costs) Fixed costs