R061: Theory for Business Studies Aims & Objectives R061: Theory for Business Studies

Title: Business Aims & Objectives Date: In your books… Title: Business Aims & Objectives Date: Tuesday, 06 August 2019

ENGAGE What do you want? Tell me THREE things that you want to achieve before you are 30 Below each one, tell me TWO things that you will do to achieve them Example: Aim: I wish to achieve an A in my Business Studies exam Objectives: I will complete all class work and coursework I will revise for at least one hour a week I will complete practice papers

Better than expected progress: Tuesday, 06 August 2019Tuesday, 06 August 2019 LO: Understand the difference between aims and objectives and how to set them Expected Progress: Describe the difference between an aim and objective Identify aims and objectives for a business Key Words Aim Objective Profit Market share Better than expected progress: Explain the difference between an aim and objective Describe aims and objectives for a business

Aims & Objectives Every business exists for a purpose. It may sell goods or services. Vodafone sells network coverage (services) and mobile phones (goods). Businesses must make a profit to exist. They need to know what they want to do and how they want to do it to attract and keep customers. Therefore, all businesses must have aims and objectives that identify what they wish to achieve.

Aims & Objectives Write in your book . Aims are what the business wants to achieve, e.g. make a profit, be the best, attract new customers, etc. . Objectives are the targets that businesses set themselves to help them to achieve their aims.

Have a look at the statements – are they aims or objectives? Aim or Objective? Have a look at the statements – are they aims or objectives?

SMART Organisations set themselves objectives to help them to achieve their aims. Many set SMART objectives: . objectives are aimed at what the business does, e.g. a hotel might have an objective of filling 60% of its beds a night during October, this objective is specific. the business can put a value to the objective, e.g. £10,000 in sales in the next half year of trading. Agreed by all those concerned in trying to achieve the objective. the objective should be challenging but realistic, but it should also be able to be achieved by the resources available. they have a time limit of when the objective should be achieved, e.g. by the end of the year. Match the criteria with the correct description of SMART

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What are the SIX main types? Increased market share Types of objectives Sales growth Survival What are the SIX main types? Social benefit To make a profit Produce a service to the public

An objective for a new business Survival An objective for a new business The objective is to run the business for at least a year without being made bankrupt or the business going under

An established business would have the objective to make a profit Some business might want to increase the profit that they make

Sales growth Try to increase sales as much as possible More sales means more chance of survival or making a profit Sales can be increased in the short term by reducing prices – reduced profit Sales can be increased in the long term by increasing marketing spend

Social benefit This is usually for charities This objective is led by a belief in what they do and what they stand for Example objective: We will ensure that we are environmentally friendly in all we do

Increased market share A business can increase market share by increasing the sales of their products against their competitors Eg Sony and Microsoft both want to increase their market share of next gen games consoles

Provide a service to the public Public sector businesses (like school and hospitals) will have this objective. They would not want to make a profit Eg a school might want all their students to achieve at least 5 GCSEs at grade C or above A bus company might want to give everyone access to cheap transport

Business in context Have a look at the business scenario’s, what might they have as an aim?

Question Practice Complete the questions on the sheet http://www.businessed.co.uk/index.php/home/activities/gcse-activities/gcse-activities-topic#business-objectives