Unit 1.1 Understanding the Nature and Purpose of a Business


Why does a Business exist?

  • create wealth
  • create employment
  • create new products
  • enhance reputation

Mission/aims and objectives

Mission Statement-  A formal summary of the aims and values of a company, organisation, or individual.

Objective-  Commitments which give direction. Sets out clearly what has to be achieved.From a mission will come SMART objectives. They turn the mission statement into something more quantifiable.

Why set objectives? 

  • Large companies cannot make all decisions at corporate level
  • They need to give authority to middle management to make middle-ranking decisions
  • It is motivating to have a clear goal




this is all ineed