Unit 5 - Business objectives

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  • Created on: 20-03-13 13:49
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Memo
1
Aims, objectives and mission statements
All businesses have different objectives.
Businesses must have their objectives stated clearly to the employees.
Otherwise, the businesses may lose direction and their purposes.
Aim - where the businesses want to be in the future, its goals.
E.g. We want to grow the business into America.
Business objectives - clearly defined targets.
They should be: SMART
Specific
Measurable
Agreed
Realistic
Time-specific
E.g. We want to achieve our sales to $1,000,000 in American market by 2020.
Mission statement - vision of the businesses; they are open to anyone, including employees,
customers and even suppliers.
E.g. "To bring inspiration and innovation to every athlete in the world." is Nike's mission statement.
Objectives of private enterprise
Survival - usually for short term; Used when a business first sets up, or when many businesses enter
the market at the same time.
Profit - try to make the most profit possible;
- Most objectives for the owners and shareholders.
Sales growth - try to make as many sales possible
- Most objectives for the managers who want higher status.
Gaining and enlarging market share - a larger share in the market
This means more profit.
Providing employment - some businesses are set up to provide a job to the owner
himself/herself.
Objectives of public enterprise
Public corporations:

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Memo
2
To provide service to the public,
To help improve the ability of the economy
Public organisatons: (monitor private sector activities)
To ensure that the business comply with the laws
To protect the industries and jobs
To ensure that the consumers are not exploited through monopoly
Health care, national securities and education establishments:
To provide services that are paid through taxation
*Private objectives DO NOT include social benefits
(e.g. creating employment, adding to nation's tax, improving the environment etc.…read more

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