Business Aims and Objectives (Part Two) Wednesday 4th July, 2012 Year 9 GCSE Business Studies

Learning Objectives £ To know at least TWO reasons as to why businesses set aims and objectives. ££ To describe what makes a GOOD business aim (target) – SMART! £££ To evaluate how well a business has been at achieving its aims/objectives by looking at their mission statements.

Why is it important that an entrepreneur has clear aims/objectives? In pairs on your whiteboard list at least 3 reasons why it is important.

Why is it important that an entrepreneur has clear aims/objectives? It helps with decision making/establish priorities It helps investors It provides targets It can motivate everyone connected with the business It gives the entrepreneur and employees clear direction.

Learning Objectives £ To know at least TWO reasons as to why businesses set aims and objectives. ££ To describe what makes a GOOD business aim (target) – SMART! £££ To evaluate how well a business has been at achieving its aims/objectives by looking at their mission statements.

Roger’s Sea Food Restaurant Sea food restaurant in Southend 10 years Profitable, very popular The main aim for Roger’s restaurant is to ‘ensure total customer satisfaction’ Question: Why would this be the main aim? Question: How could Roger go about trying to achieve this aim?

Something is missing…!!! By how much? By when? (deadline)

SMART targets Specific – should be detailed and definite. Measurable – by how much?, i.e. figures and percentages should be included. Attainable – is the target possible to reach? Relevant – does it follow the overall plan for the business? Time-Related – when will the target be achieved?

Learning Objectives £ To know at least TWO reasons as to why businesses set aims and objectives. ££ To describe what makes a GOOD business aim (target) – SMART! £££ To evaluate how well a business has been at achieving its aims/objectives by looking at their mission statements.

Survive Break-even Total Costs = Total Revenue Revenue – money as a result of selling something Survive for the first few years

Question: What can new businesses do with any ‘profit’ that they make? Profit = Total Revenue – Total Costs Question: What can new businesses do with any ‘profit’ that they make?

Question: How can a new business grow? Grow/Expand Question: How can a new business grow?

Mission Statements A statement that defines the essence or purpose of a company – what it stands for i.e. what broad products or services it intends to offer customers.

Who do these belong to? "We create happiness by providing the finest in entertainment for people of all ages, everywhere.“ 2. At *********, we work to help people and businesses throughout the world realize their full potential. This is our mission. Everything we do reflects this mission and the values that make it possible. 3. ********'s vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile." 4. "Our mission is to be the consumer's first choice for food, delivering products of outstanding quality and great service at a competitive cost through working faster, simpler, and together. 5. “********'s mission is to provide a global trading platform where practically anyone can trade practically anything.“ 6. "To build a place where people can come to find and discover anything they might want to buy online"

Learning Objectives £ To know at least TWO reasons as to why businesses set aims and objectives. ££ To describe what makes a GOOD business aim (target) – SMART! £££ To evaluate how well a business has been at achieving its aims/objectives by looking at their mission statements.

Your turn to create your own Activity Your turn to create your own MISSION STATEMENT!