Unit 2 Task 1 , What Is Meant by the Terms Aims and Objectives

Topics: Economics, Private sector, Strategic management Pages: 6 (1694 words) Published: January 8, 2013
Task 1, what is meant by the terms aims and objectives (P1)
Mission Statements:
A mission describes the organisations basic functions in society, this is in terms of the products and services that it produces for its customers. A clear business mission should have each of the following elements Purpose, this is why the business exists, next there is the Strategy and scope, this is what the business is doing and going to try and achieve, next is the standards and behaviours, this is the rules and regulations of how the business is to be operated, finally there is the values, this is what the management believes in for the business to work. The aims of a business can be different depending on which sector they’re in: Privately owned business:

This business focuses more on their customers and the employees, with the costs of their products or how they give the value for the money to the products that they sell. They also focus on the profit maximisation, the growth, and their increasing market share survival. Publicly owned organisations:

These may mention the service they provide, the work they do is included in the missions statements about the quality of their efficiency ad customers. These are also here to provide the best service possible to the community with the money that is provided by the government for them to spend. Non-for-profit and voluntary organisations:

These people focus on the services they provide, the causes they support or their aims in helping those who are in need. These also focus on charities for example: Oxfam, British heart foundation, and many more charities, that will help people who are indeed.

Strategy and scope
Standards and Behaviours

3 Examples of mission statements.
To provide its 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 they will develop their people and establish lasting relationships with their suppliers. Reference: http://www.bized.co.uk/compfact/easyjet/easy8.htm BAA

"Our mission is to make BAA the most successful airport group in the world. This means: •Always focusing on our customers' needs and safety.
Achieving continuous improvements in the profitability, costs and quality of all our processes and services. •Enabling us all to give of our best.
Growing with the support and trust of our neighbours."
Source: BAA Web site
Reference: http://www.bized.co.uk/compfact/baa/baa8.htm

McDonald's aim to be the UK's best fast service restaurant experience. Reference: http://www.bized.co.uk/compfact/mcdonalds/mc9.htm Many mission statements are quite short, but others are long. These all include the aims and the objectives of the business, in other words what the business is going to do and how it will achieve its missions.

5 Business Aims:
Survival, Is a concern for all business especially when they first start trading, To survive a business needs to work really hard to find and keep customers, but making sure there a lot better than their competitors. • Growth, this is another way of saying of increasing the sales, but the sales can be increased by increasing the market share, by selling in new areas or to new customers of the country, or even developing better products or services. •Breaking Even, In order for a business to service it needs to be able to break even, this is the point where a business becomes self sufficient, where the money it collects in each sales is equal to the money it spends on costs. •Sales, this is where some businesses only focus on their increasing sales, perhaps because they think that big firms can compete more effectively than smaller companies/ businesses. •Market Share, This is where many companies will aim to increase their market share each year by winning its customers away from their rivals. The aims of a...
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