B USINESS M ODEL AND P LAN 1 In your books, write down what you think they want to achieve? A premier league football club A contestant on “The Weakest Link” A NHS hospital The RSPCA A mother elephant in Africa An amateur theatrical society A window cleaner Confused.com Subway Do they have just one objective or many?

B USINESS MODEL - OBJECTIVES  In this topic you will learn about:  Business models  Setting business aims  Setting business objectives  Business stakeholders 2

B USINESS M ODEL  A business model shows how a business aims to generate and make a profit from operations  The model includes the components and functions of the business  The model shows the revenues the business will generate and the expenses it incurs  The model states the business’ aims and objectives 3

B USINESS AIMS 4 Business aims are the long-term vision or goals.

B USINESS OBJECTIVES  Business objectives are measurable targets to help achieve the overall aims of a business  Objectives should be ‘SMART’  S _ _ _ _ _ _ _  M _ _ _ _ _ _ _ _ _  A _ _ _ _ _ _ _ _ _  R _ _ _ _ _ _ _ _  T _ _ _ _ Your objective is to work out what SMART stands for without being hung!

SMART OBJECTIVES  The best types of objective are SMART. Smart stands for:  Specific: clearly state what is to be achieved, e.g. increased profits.  Measurable: the desired outcome is a number value that can be measured, e.g. increase profits by 10%.  Agreed: all staff are involved in discussing and agreeing an aim.  Realistic: the target is possible given the market conditions and the staff and financial resources available.  Timed: the target will be met within a given period of time, e.g. 12 months.  An example of a SMART objective is 'to increase profits by 10% within the next 12 months'. SMART objectives allow the performance of a business to be assessed. E NTERPRISE IN THE B USINESS W ORLD 6

S AY WHAT YOU SEE 1.2 SETTING BUSINESS OBJECTIVES

I NFLUENCE OF THE S TAKEHOLDER ON B USINESS OBJECTIVES StakeholderStaffOwnerCompetitorsSuppliers Bank Manager Customers Local Community A stakeholder is anyone that has an interest in a business What do you think the objective of each stakeholder is?

I NFLUENCE OF THE S TAKEHOLDER ON B USINESS OBJECTIVES 1.2 SETTING BUSINESS OBJECTIVES How do stakeholders influence a business?  Bank managers provide finance in the form of bank loans  Employees provide their services in return for income and job satisfaction  Communities expect a firm to create jobs and to behave responsibly  Suppliers provide goods and services in return for payment  Customers spend money in return for an appropriate quality of product Each stakeholder will clearly have an influence on the firm – whether it be providing finance, services or custom

T ASK P5, P6, M5 + D3  Open the template “P5 + P6 Business Model” on the Shared area.  Complete each section in as much detail as you can about the business you wish to start up.  Write a Word document that explains how the format you have chosen for your business and your completed business plan will make sure your business is a success. Please compare it to local businesses to prove your points.  Present your initial PowerPoint and your Word document to an audience. 10 Progress Board