1. Mission Statements/ Business Aims
GCSE Business Studies

2. Mission Statement
A mission statement summarises the overall objectives of a company.
Examples of mission statements are:
“to provide our customers with safe, good value, point-to-point air services. To effect and to offer a consistent and reliable product and fares appealing to leisure and business markets on a range of European routes. To achieve this we will develop our people and establish lasting relationships with our suppliers.” Easyjet
‘McDonald’s aim to be the UK’s best fast service restaurant experience.’

3. Business Aims The main business aims are: Survival Profit Maximisation
Growth
Corporate Image/Public service
Concern for the Environment/Social Responsibility

4. Survival A business is likely to have survival as a central aim:
When it starts up
During difficult economic conditions

5. Profit Maximisation This is typically the central aim of any business.
A business will have the aim of making a profit which:
Allows the owner/s to have a certain standard of living
Improves from one year to the next

6. Growth A business is likely to have this aim when:
it has been established in the current market
it is making sufficient profits to finance the expansion

7. Corporate Image and Public Service
A business will want to be viewed in a positive light by:
Customers
Suppliers
Other companies
Having a positive corporate image should lead to customer loyalty, increased sales and profits.
Public service is the main aim of public sector organisations.

8. Concern for the Environment/ Social Responsibility
Concern for the environment and social responsibility have become increasingly important.
Business has legal obligations not to damage the environment.
A business can gain a positive corporate image by working towards achieving this aim.

9. SMART Business aims should be SMART: Specific Measurable Achievable
Realistic
Time-bound

10. Aims in Conflict
Some aims which a business has can appear to conflict, for example:
Profit maximisation versus concern for the environment/social responsibility
Growth versus concern for the environment/social responsibility

11. Aims of Private, Public and Social Enterprise Organisations
Private Sector
Profit
Growth
Corporate image
Concern for environment/ social responsibility
Public Sector
Public service
Covering costs - break even

12. Why are Aims Helpful?
Give direction and a common purpose for management and staff
Useful in the context of forward planning
Will help the firm with decision making

13. Ethical and Moral Issues Associated with Business Aims
A business will want to make a profit but should also be ethical and moral in its practices, for example:
Treat employees fairly
Deal honestly with customers
Refuse to deal with companies/countries where workers are exploited
Reduce, reuse and recycle