Business Studies – Objectives And Strategies - Business Obje

Revision notes on objectives and strategies for AS Business Studies?

HideShow resource information
  • Created by: Emma Rudd
  • Created on: 25-03-08 16:29
Preview of Business Studies – Objectives And Strategies - Business Obje

First 501 words of the document:

Business Studies Steve Emma Rudd BMA
Business Studies ­ Objectives and Strategies Business Objectives
Corporate Aims and Goals
The corporate aim is the overall purpose of the business. Businesses have many
individual aims not just making a profit.
The Mission Statement
Organisations often produce their aims in the form of a mission statement. Mission
statements are set out in writing what the firm wants to achieve and often include
information on the values of the business, i.e. what it believes in and how it wants
to act. Mission statements make the cooperate aims of the organisation clear for
everyone to see. Aims can vary greatly between organisations.
What Determines a Firms Aims?
The firm's owners and managers will determine the aims of the business. The
owners will have certain aims of their own, such as a desire for the business to
grow, a desire to establish the firm as the leading provider for a particular type of
product or service, or even to keep the business within the family. However their
aims might be influenced by what managers think is realistic given the existing state
of the firm and the market conditions.
The aims of a firm may well change over time as the owners lives change, they may
also vary according to changes in the state of the business environment. If the
economy is in recession for example a firm's main aim may be to survive. In a more
prosperous period it may aim to increase its share of the market.
The cooperate aim or mission sets out the overall vision of where the company
wants to be. For example it may want to be `the market leader' or `the worlds
largest provider'. To fulfil this mission, a firm must set specific objectives.
Objectives are targets that need to be achieved to reach the overall aim. If an
organisation can achieve it various objectives it will have achieved its aim.
SMART Objectives
The objectives provide more specific targets for managers. To be effective
objectives need to be SMART:
S ­ Specific ­ They must set out exactly what the firm is trying to do (such as
increase sales of profits by a certain percentage.)
M ­ Measurable ­ It must be possible to measure whether the objective has
been achieved.
A ­ Agreed ­ It must be agreed that it is an appropriate target and it is the
one they will aim to achieve.
R ­ Realistic ­ The target has to be achievable. If an objective is not
attainable people will be less likely to work towards it because they no its no
T ­ Time specific ­ It is important to specify how long people have to
complete the objective.
Typically businesses set objectives relating to:

Other pages in this set

Page 2

Preview of page 2

Here's a taster:

Business Studies Steve Emma Rudd BMA
Social considerations
Employee welfare
Most organisations set out to make a profit. This profit can be used to reward
owners and invest into the firm. Profit is vital for growth and to increase the wealth
and income of the owners. To achieve its profit targets a firm may set further
objectives such as `to increase revenue by...' or `to decrease costs by...'.…read more

Page 3

Preview of page 3

Here's a taster:

Business Studies Steve Emma Rudd BMA
Why Have Objectives?
By agreeing objectives with other members in the organisation, managers can
ensure that everyone is working to the same overall goal. Without clear objectives
people may tend to do their own thing.
Objectives can also be very motivating for employees because they set out exactly
what the firm wants to achieve.…read more


No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all resources »