1. Aims, objectives and mission statements OCR Diploma

2. Aims All business have aims they want to achieve. All business have aims they want to achieve. These are the long term visions or goals of a business. These are the long term visions or goals of a business.

3. Profit maximisation – is when a business aims to make as much profit as possible. Profit maximisation – is when a business aims to make as much profit as possible. Survival – in difficult times making good profits may be unrealistic. In this situation, the business may aim just to survive until times improve. Survival – in difficult times making good profits may be unrealistic. In this situation, the business may aim just to survive until times improve. Growth – to sell more goods or services eg open another branch or buy out a competitor. Growth – to sell more goods or services eg open another branch or buy out a competitor.

4. Break-even – making enough money to cover costs. No profit. No loss. Break-even – making enough money to cover costs. No profit. No loss. Market Share – taking away business from competitors. Market Share – taking away business from competitors. Relationships with other businesses – may involve joint initiatives to offer goods or services to people. Relationships with other businesses – may involve joint initiatives to offer goods or services to people. Service provision – offering new or improved services to attract more customers Service provision – offering new or improved services to attract more customers

5. Business objectives Objectives are more specific than aims. They are targets which are set to help to achieve the overall aims of the business. Objectives are more specific than aims. They are targets which are set to help to achieve the overall aims of the business. A problem with some objectives is that they are not very clear or specific. A problem with some objectives is that they are not very clear or specific. This type of problem can be overcome by setting SMART objectives. This type of problem can be overcome by setting SMART objectives.

6. SMART S Specific S Specific - a clear definition, often including a number - a clear definition, often including a number - to increase business client base by 10 - to increase business client base by 10 M Measurable M Measurable - achievement can be checked. - achievement can be checked.

7. A - Achievable A - Achievable - can achieve your target if you stretch yourself - can achieve your target if you stretch yourself R - Realistic – a sensible target. R - Realistic – a sensible target. 10 clients is a realistic number. T - Time-related T - Time-related Every objective should have a date for achievement or review eg 3 months. Every objective should have a date for achievement or review eg 3 months.

8. Examples of Objectives Increase sales Increase sales Increase number of customers Increase number of customers Reduce costs Reduce costs Train 40% of employees in Customer Care by December 2008 Train 40% of employees in Customer Care by December 2008

9. Mission Statements The purpose of the business The purpose of the business Mission statements are often divided into 3 sections. Mission statements are often divided into 3 sections. The fundamental purpose of the organisation – why it is in business. The fundamental purpose of the organisation – why it is in business. Activities it is doing to achieve its purpose. Activities it is doing to achieve its purpose. Values and beliefs held by the organisation. Values and beliefs held by the organisation.

10. Sainsbury’s plc 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. 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.

11. Havering College OUR VISION OUR VISION Is of a College which is a resource provided by the community for the community. Is of a College which is a resource provided by the community for the community. OUR MISSION OUR MISSION Is to deliver quality education and training. Is to deliver quality education and training. OUR PURPOSE OUR PURPOSE Is to attract students, retain students and ensure students achieve their individual learning goals and thereby raise standards, widen participation, address social exclusion and contribute to economic growth. Is to attract students, retain students and ensure students achieve their individual learning goals and thereby raise standards, widen participation, address social exclusion and contribute to economic growth.

12. Writing a statement A good mission statement should be positive. A good mission statement should be positive. It should be clear and well written. It should be clear and well written.

13. Benefits It communicates a clear message to the outside world. It communicates a clear message to the outside world. It can help inspire and motivate staff. They can take pride in the organisation and what it aims to achieve. It can help inspire and motivate staff. They can take pride in the organisation and what it aims to achieve. It will help the organisation set clear aims and objectives. It will help the organisation set clear aims and objectives.

14. It gives clear information about the customer needs it intends to satisfy and the way in which it intends to meet those needs. It gives clear information about the customer needs it intends to satisfy and the way in which it intends to meet those needs.

15. Corporate objectives Corporate means whole company. Corporate means whole company. - to open six more stores within 12 months - to open six more stores within 12 months - to increase sales by 10% over two years - to increase sales by 10% over two years - to reduce costs by 5% 2008/2009 - to reduce costs by 5% 2008/2009

16. Strategic Plans Long term plans related to the whole business. Long term plans related to the whole business. They relate to where the business wants to be in the future as opposed to where it is now. They relate to where the business wants to be in the future as opposed to where it is now. The managers of the company will need to decide upon: The managers of the company will need to decide upon:

17. - the goals of the company - the goals of the company - the resources they will require - the resources they will require (staff, time, money, equipment etc) - the outcomes by which success will be measured. - the outcomes by which success will be measured.

18. Strategic plans are usually decided every year yet cover the next three or four years. Strategic plans are usually decided every year yet cover the next three or four years. Each year, progress is checked against the plan and a new one devised. Each year, progress is checked against the plan and a new one devised. This enables changes which have, or will, affect the organisation to be considered and plans revised against these. This enables changes which have, or will, affect the organisation to be considered and plans revised against these.

19. PEST analysis One useful and common method is to carry out a PEST analysis, where the external factors which may affect the business are divided into 4 different headings. One useful and common method is to carry out a PEST analysis, where the external factors which may affect the business are divided into 4 different headings. P – Political factors P – Political factors Such as changes to laws and regulations eg health and safety laws, minimum wage rate

20. E – Economic factors E – Economic factors interest rates, unemployment, customer spending levels, competitors - S - Social Factors eg working hours, increased retirement ages, increase trends like organic food - T – Technological Factors - Pcs, mobile phones, texts, plasma screens

21. Company Policy - relates to the principles and ethics which the company believes in. - relates to the principles and ethics which the company believes in. -The Co-operative Bank has strict principles about where they invest their money. -The Co-operative Bank has strict principles about where they invest their money. It will not invest in the tobacco industry or in countries which do not respect human rights. It will not invest in the tobacco industry or in countries which do not respect human rights.

22. Culture of the Company - relates to its style of behaviour - relates to its style of behaviour - the atmosphere - the atmosphere - the standards - the standards Some organisations are very formal. Some organisations are very formal. Others are very informal, yet the work still gets completed. Others are very informal, yet the work still gets completed.

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