All businesses have aims they want to achieve. These are long-term plans, probably over the next three to five years. Businesses will probably want to focus on one or more of the following areas this includes: Profit and Profit maximisation are privately owned businesses that aim to make profit, when some want to achieve maximum profit. Survival is when a business is having a hard time making profit they will try and survive till a better time to come. Break-even is covering the costs of making the product and running the usiness, but no more. Growth is were a business plan to sell more products as a business to grow as a business. Market share is the share of customers that buy from a certain supplier, of purchase a specific product or service. Service provision is the act of performing a task for a business or person that wants or requires it in exchange for acceptable compensation. Objectives are more specific than aims. They are set over the short to medium term. Objectives are necessary because aims, are too general and may be quite overwhelming.
Your aim may be to go to university, run your own business or bean accountant one day. Each business sets smart objectives to help them to maintain there business this include: Specific Target a specific area for improvement. Measurable – Quantify or at least suggest and indicator of progress. Achievable ” Specify who will do it. Realistic – State what results can realistically be achieved, given available resources. Aims & Objective Purposes It is not always possible to meet aims and objectives.
Businesses will want to now why they have failed and then take action to correct this as soon as possible. A business may not meet its aims and objectives for several reasons. Many of them relate to the type of external changes mentioned earlier in the PowerPoint. Businesses often try to forecast these changes in advance by doing a PEST analysis. Political – A change of laws and regulations may effect the business, such as the introduction Of drink driving laws or the smoking ban, which adversely affected the pub trade in Britain. Economic – the economy may go into recession, as it did in 2008/09.
As a result, consumer demand for the goods and services of many businesses fell dramatically. Social – people’s buying habits and lifestyles might change. The demand for carpets fell when wooden floor became popular. Technological – the launch of a new, technology superior product or service by a competitor can have a serious effect. If a business suspects that it will not achieve its aims and objectives, it must take immediate action. Its choices include: Reducing costs ” closing branches, cutting salaries or laying off staff
Reducing prices to boost sales, giving discounts will lower overall profits Diversifying into new products or services , or doing the opposite, focusing just on the core business activity Scrapping expansion plans Finding new or better Ways Of meeting customers needs Cutting the dividend Revising the current aims and objective to ensure they are realistic in the current business climate. Aims and Objectives in different sectors Aims and Objectives vary between organisation in different sectors.
These businesses have different purposes. Private sector business provide goods and/or services, and must make a profit to survive. They can only break even or make a loss for a very short time, or they will have to close. Public sector businesses are owned by the state. Many provide essential services free of charge or below cost price, such as the NHS. Remember that the government also owns business that aim to be profitable, like the Royal mail. Voluntary sector organisations raise money that is used to support a particular cause.
They aim to make a surplus, after the costs of the business ave been deducted, and reinvest this into the business. Aims and Objectives of Waitrose Aims Waitrose aims are their long term targets that they would want to achieve by using their skills as a business. One Waitrose aims is to double its 3. 7% market share over the next 1 0 years by increasing the number of stores in the UK from 173 to 250 and strengthening its foothold in the north. Waitrose objectives are short term targets that they would want to achieve by using their skills as a business. Waitrose objectives help to achieve their aims. The following are some of Waitrose objectives that I will be covering: Maximise profit Develop their organic range Develop links with local community Motivate staff Increase levels of customer service Increase the number of branches in the North Maximising profits: This objective is one of the most important objectives that Waitrose want achieve. This needs a lot of team work by Waitrose stores. To increase profits, Waitrose must increase revenue and avoid costs, so that it would result in the highest profits. Before using a method to help maximize profits, Waitrose.